Mark wrote:



Glenn Ashmore wrote:

Seems the Chinese are on a building binge and are scarfing up all the
steel they can get their hands on. Scrap prices have already
increased considerably. As far as he is concerned US steel makers
have been crying wolf all along.




My guess is the Chinese are buying up scrap to create a shortage. It's
easier/ cheaper to make steel from scrap. I think that would drive US
manufacturers cost higher making the US even less competitive.


OTOH, Dubya could always seize Chinese assets.

What assets? Unlike the Japanese who lost much of their forign exchange
surplus in US real estate investments like Pebble Beach, the chinese are
taking their dollars and spending it on infrastructure and buildings.

From what my steel dealer says the Chinese are driving scrap up prices
indirectly because they are buying a lot of finished structural steel
and the exporting producers are scrambling for scrap.

Just wait until they start turning that steel into cars. Then we will
be competing against them for gasoline.

--
Glenn Ashmore

I'm building a 45' cutter in strip/composite. Watch my progress (or lack
there of) at: http://www.rutuonline.com
Shameless Commercial Division: http://www.spade-anchor-us.com