Where is Canada in the China steel dumping craze?

1

A four-letter word may be right as Steve Butland said at city council last Monday.

As city council spent an hour talking about rats, Butland’s response was “s###.”

And maybe he’s right. What is Canada doing to stop this Chinese steel dumping internationally?

The U.S. put a 256.44 per cent tariff on their cold-rolled steel. The even slapped a 71.35 per cent tariff on Japan too while they were at it.

Cold-rolled steel is used to produce, among other things, auto parts, appliances, shipping containers, and construction materials. Analysts believe that the U.S. imposed duties will prop up steel prices, and for companies that are in the business of purchasing foreign cold-rolled steel, this will increase costs.

“However, the market demand will likely not improve, especially in the oil and gas segment; and without an increase in market demand, the duties may not result in any sustained, long-term benefits. This is especially true given the likelihood that Chinese manufacturers will not cut steel production despite the increased duties because of potential political fall outs from resulting job losses,” one report says.

The U.S. already has anti-dumping duties in place on 19 categories of Chinese steel, yet these duties have done little to help the now sluggish U.S. steel industry. In 2015, the benchmark hot-rolled coil index fell 35 per cent to under $400 per ton, contributing to a $1.5 billion loss at U.S. Steel, and over a $7 billion loss at ArcelorMittal, the world’s largest steelmaker. These companies have been forced to lay off U.S. workers as a result of the losses.

Everyone knows the state of our steel industry in the Sault. With the Essar Group not even being allowed legally to make an offer on the diminishing steel plant, who knows who will jump in the game.

Butland was right trying to steer council away from rats but there was not much ally for him.

I could understand his anger with saying “s###.”

Pressure is mounting for the U.K. to levy their tariffs that are much lower than the U.S.

The estimated U.S. demand of steel is 110 million tons per year, which is far higher than the U.S.’s annual production of about 80 million tons.

“Given the U.S’s reliance on foreign steel, the increased duties are an attempt to strike a balance between fair competition and necessity,” one report said.

All I remember learning was that we have the best steel in the world because of our Great Lakes as a water source. Pittsburgh steel rots. Plain and simple.

We’re better than that.

1 COMMENT

  1. Justin is more concerned with traveling around the world with his entourage and nannies on fantasy trips, blowing large sums of our money while his wife becomes the latest fashion model, wearing hundreds of thousands of dollars worth of overpriced clothes.
    Everything this new government is planning is bad for us financially.

Comments are closed.