Posted Mar 9, 2018, 11:40 PM
|
 |
Registered User
|
|
Join Date: Jul 2015
Location: Greater Philadelphia
Posts: 2,866
|
|
Quote:
Originally Posted by iheartphilly
Yeah, I get that.
International trade left to its natural course without tariffs, quotas, or other restrictions.
Regardless, if a foreign company decides to sell steel at a lower price, that's there pejorative. I know we cry "unfair," but if US companies choose not to buy foreign steel, they can always buy US steel and the dumping would slow or reverse. But, there is voracious appetite for lower cost steel at the expense of US steelmaker, yes. However, the choice is with the company buying the steel. They can support US steel manufacturers or not, but again US companies that use steel must survive and be profitable so as I've said earlier no one is forcing US companies CEOs to buy foreign steel, but capitalism and profits can be a beast. Plus, I think it ultimately hurts US downstream companies that rely on it to make other commodities like vehicles, beer kegs (aluminum), and other U.S. industries that heavily use steel and aluminum.
Maybe if there's an economist on this board, s/he can chime in.
|
Not an economist, but a finance major before going to law school. This is mainly about China. The Chinese companies are not making a business decision to sell for less. Manufacturing is at a pace that exceeds demand for product. They are selling at a loss in some cases, but being propped up by the government. Google what the WTO found with respect to Chinese solar panels. The same thing is going on with steel/aluminum. Transshipment though other countries from China means the numbers are worse than they at first appear.
|
Threaded Mode