Cap Jumps as New Chile Tariffs Make Steelmaking Profitable Again
- Move imposes anti-dumping fees of up to 34% on imports
- Decree pushes Cap to reverse decision to shutter operations
Rolls of steel on the transport wharf at Baowu Steel Group Co.'s Baoshan production facility in Shanghai, China.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
Chilean steel and iron ore producer Cap SA rose the most in two weeks after authorities slapped tariffs on some Chinese steel products, in a move that prompted the firm to overturn a decision to shutter its mills.
Cap will benefit from duties of 34% on steel balls and 25% on the bars used to make them. In March, the Santiago-based company announced plans to cease steelmaking due to an influx of cheap shipments from China, whose mills continue to churn out steel despite slower domestic demand.