MarketLine Blog

Posts tagged to steel

Tata-ThyssenKrupp merger: Deal will have short-term impact but doubts remain over long term

MarketLine

The merger of the European steel making section of Tata and German based ThyssenKrupp will likely have useful short-term impacts upon European production, but the benefits heading into the long-term future are less clear. Soon to be the second largest steel maker in Europe, the combined company will have sufficient bulk to compete much better with Chinese producers who are under pressure from the central government to consolidate. Chances are the new company will gain substantial efficiencies and improve product quality beyond other major rivals, but this only solves some… Read more

US and China trade talks: Emphasis on steel and tariffs is misguided

MarketLine

The danger of current US policy towards Chinese steel is that damaging tariffs will be imposed. Many observers describe such a policy as the nuclear option because the ability of other countries to impose harmful tariffs on US goods will be just as strong. Troublingly, tariffs would do little to solve the actual problem of dumping on the international market. A policy with many similarities was attempted in 2002 but resulted in a public climb down by the then President Bush after severe job losses were incurred. Tariffs are not… Read more