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What is the basis for this assertion? By far the largest source of Canadian steel imports is the US (55%). China accounts for only 10% of Canadian steel import
by allengeorge 8y ago
What is the basis for this assertion?
By far the largest source of Canadian steel imports is the US (55%). China accounts for only 10% of Canadian steel imports. Even if all the Chinese steel Canada imported (0.8 million metric tons) flowed directly into the US - highly unlikely - this would account for 2% of the steel the US imported (34.6 million metric tons). And this percentage is even smaller considering the overall US steel market. Hell - US production alone is 81.6 million metric tons and increasing. Somehow a max of 0.8 million metric tons destabilized a US steel market of approximately 81.6 mmt or more?
All numbers as of 2017 and from the US government:
[1] Canadian steel imports: https://www.trade.gov/steel/countries/pdfs/imports-Canada.pdf https://www.trade.gov/steel/countries/pdfs/imports-Canada.pd...
[2] US steel imports: https://www.trade.gov/steel/countries/pdfs/imports-us.pdf https://www.trade.gov/steel/countries/pdfs/imports-us.pdf
- hourislate 8y agoSo why all of a sudden is Canada applying tariffs to Chinese steel if it was never a problem? https://www.cnbc.com/2018/06/26/canada-braces-for-diverted-steel-imports.html https://www.cnbc.com/2018/06/26/canada-braces-for-diverted-s... I'm not an insider but I certainly know enough people in the industry and understand cross-border trade shenanigans.
- allengeorge 8y agoBecause the US applying tariffs has removed avenues for Chinese steel entering the US. That steel can be diverted to other markets (for example, Europe or Canada) and thus flood those markets as well, crashing the price there. There is no mystery here. Europe did the same thing when the US applied their tariffs. They know the flow is going to go somewhere, and they don't want it to be dumped on their markets either.
- hourislate 8y ago>Because the US applying tariffs has removed avenues for Chinese steel entering the US. So you are agreeing that Canada is dumping steel into the USA. Thanks...
- allengeorge 8y agoNo. I said that it removed avenues for Chinese steel. Chinese steel is imported directly to the US too. It accounts for 2% of US imports. Please read above referenced documents.
- slededit 8y agoBecause now that steel from around the world can't easily enter the USA it will be looking for somewhere to go. The Trump tarrifs have massively destabilized prices.