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Steel tariff to boost domestic US coal demand
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Report summary
On 8 March 2018, the US president signed an executive order which places a 25% tariff to steel imports. This will cause about 10.6 Mt of imported steel to be uncompetitive and to be replaced by domestic production. The action already prompted US Steel to restart its B furnace at Granite City. About 60% of the imported steel will need to be replaced by steel produced by basic oxygen furnaces. Domestic metallurgical coal demand is expected to increase 3.8 Mtpa.
Table of contents
- Wood Mackenzie expects tariffs to cause 10.56 Mt loss of imports
- What proportion of BOF to EAF steel production is likely to occur?
- New mill openings
- Is there adequate coal capacity?
- Is there adequate coke capacity?
- Additional US demand growth
- Other impacts
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