CRU: US trade actions now aimed at the heart of the power grid sector

LONDON, Aug. 17, 2020 /PRNewswire/ -- Efforts to reshore critical supply chains and secure access to strategic materials have become a top political issue for many countries, and trade barriers are a common tool used by governments to help protect local producers of strategic materials.

However, trade policy enforcements sometimes lead to market distortions in other parts of the supply chain, as industry participants with different incentives re-configure their procurement strategies to accommodate a changing legislative environment.

This Insight presents a case study on how the US transformer market has responded to trade actions targeting a niche steel product known as 'grain-oriented electrical steel' (GOES) in recent years, and how these industry responses have affected market balances for value-added products downstream of GOES sheet.

Earlier in May of this year, the United States Department of Commerce launched a probe to determine whether imports of products used in the US bulk power system were shipped in quantities or circumstances to threaten national security. The investigation was initiated under Section 232 of the Trade Expansion Act, the same piece of legislation used two years ago to bring 25% tariffs on steel mill imports from most countries.

The probe is centered on products known as laminations and stacked/wound cores, which are components of power or distribution transformers. Transformers are an integral component of the power grid, since they serve as a critical link or bridge between the three main stages of electricity delivery from producer to consumer: power generation, transmission, and distribution. Given the vital importance of electric power grids to matters of economic development and national security, efforts to safeguard the power grid and its raw materials supply chain have become paramount.

Read the full story:
https://www.crugroup.com/knowledge-and-insights/insights/2020/us-trade-actions-now-aimed-at-the-heart-of-the-power-grid-sector/ 

Read more about CRU: http://bit.ly/About_CRU

About CRU

CRU offers unrivalled business intelligence on the global metals, mining and fertilizer industries through market analysis, price assessments, consultancy and events.

Since our foundation by Robert Perlman in 1969, we have consistently invested in primary research and robust methodologies, and developed expert teams in key locations worldwide, including in hard-to-reach markets such as China.

CRU employs over 280 experts and has more than 11 offices around the world, in Europe, the Americas, China, Asia and Australia – our office in Beijing opened in 2004 and Singapore in 2018.

When facing critical business decisions, you can rely on our first-hand knowledge to give you a complete view of a commodity market. And you can engage with our experts directly, for the full picture and a personalised response.

CRU – big enough to deliver a high-quality service, small enough to care about all of our customers.

SOURCE CRU

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED