Behind ChinaÂ’s steel pricing farce
Posted on Aug 18, 2009
in Controversial Current Issues
By Arthur Thomas
14 August 2009
In late 2008 China was facing European Union dumping charges in the World Trade Organization on steel products. This coincided with the onset of the global financial crisis and subsequent recession and the hurried preparation of Beijing’s massive stimulus package.
In Beijing, discussions also addressed the role of steel in China’s stimulus package, and a proposal to establish a 5 million tonne steel stockpile. By the end of 2008, the 5 million tonne estimate jumped to 15 million tonnes.
China’s steel industry, however, had to face the question of the viability of such a stockpile. A small stockpile will have no effect on the market. If the stockpile is…
