Any significant downturn in steel demand or prices is a risk to be watched for. The objective is that 80% of existing domestic capacity will be put to use, due to these tariffs. That these tariffs have been approved leads to an uncertain period ahead for India’s steel and aluminium producers. Since Canada’s steel and aluminium industry is exempted, the impact on Novelis is likely to be less than expected. In sum, Trump’s tariffs are here to stay and how other countries react to these tariffs will be a factor that will determine how prices behave.

Source: Mint March 12, 2018 02:03 UTC