Trading day running commentary, page-4530

1. Indonesian cheap & dirty Ni (their mining & refining of dirty Ni laterites- cf CTM hydro-power, & Ni sulphides- require massive coal power, dumping vast contaminated tailings into the ocean etc., Indon workers' well-publicised health & conditions' protests etc.) contradicts much of the US & EU etc widely proclaimed green philosophy & trade, & ESG laws.

eg These ESG concerns & legislation are specifically enshrined in the 2023 EU Green Passport legislation (ie tracing & publicly recording the CO2 impact of making EV's & their Ni etc. batteries).

The US, EU, UK & other western democratic countries have already decided, from 2022, to protect vital supply chains & energy, & end dependence on China & Russia.
This will be achieved, eventually, by home production ("on-shoring"), & importing vi "friend-shoring" nations (ie specifically away, asap, from China & Russia) Critical minerals, including Ni, have been deemed as part of the crucial supply chains that need to be protected.


Whilst this 14.5.24 US legislation imposing new, large tariffs on Chinese-made EV's does not specifically mention Ni in the "unfairly low prices" China can sell its cheap batteries & EV's, it is logical, IMO, that China will face further western penalties/restrictions/exclusions on Chinese-made EV's- because of their cheap & dirty Ni battery etc. usage.

The Independent A. Feinberg 15.5.24 said

"President Biden...imposed a full 100 per cent tariff on Chinese-made electric vehicles and imposed or increasedtariffson a wide range of Chinese-made goods in an effort to prevent them from flooding US markets...

The Chinese government’s heavy subsidies for those state-owned enterprises let them “produce far more than the rest of the world can absorb,” he added, with the end result of “dumping the excess products onto the market at UNFAIRLY LOW PRICES (my emphases)” and “driving other manufacturers around the world out of business”.

The president recalled how the advent of cheap Chinese steel had devastated towns in Pennsylvania and Ohio in the early 2000s, costing thousands of workers their jobs...

Specifically, Mr Biden said he was authorising 25 per cent tariffs on Chinese-made steel and aluminium meant to directly counter “Chinese overcapacity” in both sectors, in tandem with $1.5bn in investments his administration has made in supporting the construction of new, ENVIRONMENTALLY-FRIENDLY (my emphases) steel and aluminium facilities here in the US...

He also said he was imposing a full 100 per cent tariff on Chinese-made electric vehicles in an effort to ensure American dominance in that sector.

Mr Biden also announced a 25 per cent tariff on Chinese-made EV batteries and one of the same percentage on China-sourced “critical minerals” used to make those batteries...

The president added that the US and other American allies are making serious investments in EV infrastructure such as charging stations, and all parties involved want a SUPPLY CHAIN for EVs “that isn't dominated by UNFAIR TRADE (all my emphases) practices from China”.

https://www.msn.com/en-au/news/other/biden-imposes-strategic-and-targeted-tariffs-on-chinese-electric-vehicles-and-batteries/ar-BB1mnPNI?ocid=msedgdhp&pc=LCTS&cvid=8335aa7a8222497f8f55ca198164b2a

2. Will Brazil enter into a Free Trade Agreement with the USA? Even if it doesn't, I assume the USA & other western nations would consider it as a favourable, "friend-shoring" nation for Critical Minerals.

"Last published date:2023-12-04

Brazil is a member of the Mercosur trading bloc, which has its own regional standards organization that issues and harmonizes standards. Technical committees write and recommend standards in selected areas. Each country must ratify the standard before they are adopted in that country. Several standards have already been adopted as Mercosur standards. Adopted and proposed Mercosur standards are listed on Mercosur’s website. The Executive Secretariat of the Mercosur Standards Organization is in São Paulo, Brazil.

Brazil, via Mercosur, is negotiating several FTAs and has completed one with theEuropean Unionthat has not entered into force yet, as it has not been approved by the different congresses in the EU.

The U.S. Trade Representative engages with Brazil via theAgreement on Trade and Economic Cooperation. "

Brazil - Trade Agreements