Final Thoughts
March 23, 2015
Final Thoughts
Written by John Packard
Last week a number of the large Chinese steel mills who have offices in the United States met to discuss the pressures being placed on the Chinese mills by both the Chinese central government and the U.S. government to control (reduce) the amount of steel being exported to the United States. SMU heard over the weekend from one of our sources in Asia that the consensus of opinion is for CISA (Chinese Iron & Steel Association) to be the controlling entity by picking who could send steel to the U.S. and how much (allocation).
Our sources are telling us that the ball is in CISA’s court and it is up to them to see what they want to propose to help resolve the problem. However, our sources in Asia believe that anti-dumping and countervailing duty trade suits against the Chinese mills are all but inevitable.
