{"id":1468,"date":"2018-08-13T05:03:37","date_gmt":"2018-08-13T05:03:37","guid":{"rendered":"http:\/\/euromenaenergy.com\/?p=1468"},"modified":"2018-08-13T05:03:37","modified_gmt":"2018-08-13T05:03:37","slug":"how-trumps-steel-war-on-turkey-is-set-to-change-trade-flows","status":"publish","type":"post","link":"https:\/\/emimer.com\/?p=1468","title":{"rendered":"How Trump&#8217;s Steel War on Turkey Is Set to Change Trade Flows"},"content":{"rendered":"<div class=\"lede-text-v2 lede\">\n<div class=\"lede-text-v2__container\">\n<div class=\"lede-text-v2__content\">\n<address class=\"lede-text-v2__byline\">By Thomas Biesheuvel, Elizabeth Burden, and Susanne Barton<\/address>\n<div class=\"lede-text-v2__times\"><time class=\"article-timestamp\" datetime=\"2018-08-10T13:51:46.016Z\" data-type=\"updated\" data-status=\"localized\">August 10, 2018, 4:51 PM GMT+3<\/time>\u00a0<span class=\"updated-wrap\"><span class=\"updated-text\">Updated on\u00a0<\/span><time class=\"article-timestamp\" datetime=\"2018-08-10T20:53:02.821Z\" data-type=\"updated\" data-status=\"localized\">August 10, 2018, 11:53 PM GMT+3<\/time><\/span><\/div>\n<\/div>\n<\/div>\n<\/div>\n<div class=\"content-well-v2\">\n<section class=\"main-column-v2\">\n<ul class=\"abstract-v2\">\n<li class=\"abstract-v2__item\">\u00a0U.S. plans to raise tariffs on Turkish aluminum and steel<\/li>\n<li class=\"abstract-v2__item\">\n<div class=\"abstract-v2__item-text\">The country ranks as the world\u2019s sixth-biggest steelmaker<\/div>\n<\/li>\n<\/ul>\n<p>President Donald Trump\u2019s latest broadside against Turkish steel is a fresh blow to one of the country\u2019s most important industries and will reshape global trade flows.<\/p>\n<p>Under a higher level of tariffs, Turkey will continue to lose American customers, once its most important steel market. The new tariffs won\u2019t put Turkish steelmakers out of business, but force them to find new markets, likely across North Africa or the Middle East, or displace other imports to Europe.<\/p>\n<p>\u201cIt\u2019s certainly a challenge for Turkey\u2019s steel,\u201d Colin Hamilton, managing director for commodities research at BMO Capital Markets, said in an email. \u201cThey mainly import scrap, which has just become more expensive in Lira terms, and export products. \u201d<\/p>\n<p>The U.S. plans to double tariffs on the nation\u2019s steel to 50 percent, and raise the rate on aluminum to 20 percent, Trump said on Twitter Friday.<\/p>\n<aside class=\"inline-newsletter\" data-state=\"ready\">\n<div class=\"tp-container-inner\">Turkey\u00a0makes up\u00a062 percent of bar used to reinforce concrete and masonry structures coming into the U.S. It also accounts for 37 percent of imported pipes for piling, which is used for foundation support and construction, and 14 percent of cold-rolled sheet. The tariffs will likely put U.S. steel companies in a favorable position, with Nucor Corp.,\u00a0Commercial Metals Co.\u00a0and\u00a0Steel Dynamics Inc.\u00a0set to be among the big beneficiaries, according to Andrew Cosgrove, a senior analyst at Bloomberg Intelligence.<\/div>\n<\/aside>\n<p>Turkey exported about 500,000 tons to the U.S. in the five months to May, compared with more than 1 million tons in the same period last year, according to data from the U.S. Census bureau. The U.S. has fallen from Turkey\u2019s main steel buyer to number three.<\/p>\n<p>Steel, in its more basic form of slabs, sheet or reinforcing bar, is a highly liquid market and it\u2019s usually easy for a company to find a new buyer. Attacking imports has become a favorite tool of politicians from Europe to the U.S., causing flows to be rerouted. The global industry has been described as a game of whack-a-mole; if exports are blocked in one market, the action shifts elsewhere.Turkey ranks as the world\u2019s sixth-biggest steel producer. In aluminum, it\u2019s 31,<\/p>\n<p>a tiny player. The U.S. imported about 4,500 tons of aluminum bars, rods and profiles from the country in 2017, according to World Bank statistics.<\/p>\n<p>The U.S. measures are designed to add pressure on Turkey to release an American pastor and will further squeeze an economy that\u2019s being engulfed by a financial crisis and plunging currency. An index of Turkish steel stocks sank almost 10 percent after the announcement, before recovering some of those losses.<\/p>\n<p>In response to U.S. tariffs earlier this year, Turkey turned its exports toward European countries, such as Italy and Spain. The new U.S. tariffs will heighten fears that even more steel will head to the region, pressuring European producers. Regulators have introduced so-called safeguard measures, which slap tariffs on steel if imports exceed historical averages.<\/p>\n<p>\u201cThe tariffs on Turkey itself won\u2019t form a big threat\u201d to Europe, Philip Ngotho, an analyst at ABN Amro Bank NV, said by email. \u201cEurope has measures in place to limit imports of steel into Europe, so that will continue to offer some protection from potentially cheaper and more steel from Turkey.\u201d<\/p>\n<p><em>\u2014 With assistance by Mark Burton, and Luzi-Ann Javier<\/em><\/p>\n<div class=\"lede-video-v2 lede\">\n<div class=\"video-player\">\n<div id=\"player-IUWEM1u\" class=\"video-player__container\" data-bmmrid=\"e4LxtJX7RJu4BCDydrW_CA\" data-url=\"https:\/\/www.bloomberg.com\/news\/videos\/2018-08-10\/turkish-lira-hits-new-low-as-trump-increases-tariffs-video\" data-autoplay=\"true\" data-poster=\"https:\/\/assets.bwbx.io\/images\/users\/iqjWHBFdfxIU\/isWdMWxpm1Ak\/v5\/-1x-1.jpg\">\n<div class=\"bvp-playlist-player bvp-playlist-player--last vjs-tech-hlsjs\" data-breakpoints=\"320 640 800\">\n<div class=\"bvp-playlist-player__container\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>By Thomas Biesheuvel, Elizabeth Burden, and Susanne Barton August 10, 2018, 4:51 PM GMT+3\u00a0Updated on\u00a0August 10, 2018, 11:53 PM GMT+3 \u00a0U.S. plans to raise tariffs on Turkish aluminum and steel The country&#8230;<\/p>\n","protected":false},"author":1,"featured_media":1469,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[46,57,90,96,106,107,111,137,139,160,174,180,184,201,233,244,249,256,267,277,279,280],"class_list":["post-1468","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-aramco","tag-baroudi","tag-democracy","tag-doha","tag-electricity","tag-embargo","tag-energy","tag-gas","tag-gazprom","tag-international-maritime-disputes","tag-lebanon","tag-macron","tag-maritime-disputes","tag-offshore","tag-qatar","tag-rosneft","tag-russia","tag-saudi","tag-straddling-hydrocarbons-reserves","tag-total","tag-trump","tag-turkey"],"_links":{"self":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts\/1468","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1468"}],"version-history":[{"count":0,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/posts\/1468\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=\/wp\/v2\/media\/1469"}],"wp:attachment":[{"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1468"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1468"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/emimer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1468"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}