Posted on 02/21/2008 6:21:41 AM PST by TigerLikesRooster
Taiwan bans certain steel exports for first time
By Kathrin Hille in Taipei
Published: February 21 2008 03:53 | Last updated: February 21 2008 03:53
Taiwan has banned exports of certain steel products for the first time, in a move that could further contribute to the squeeze in global steel supply.
From March 5, exports of small billets and rebars will be banned for three months, and exports of H beams and scrap steel will be subject to government approval on a case-by-case basis, the Ministry of Economic Affairs said on Thursday.
The measure is an attempt to protect the island’s economy from the effect of soaring global steel prices, following an outrcy from local construction companies over steel supply bottlenecks.
Taiwan is one of the world’s leading steel exporters, with US$10bn in steel exports, and is ranked eighth among global steel exporters in 2006, according to the World Trade Organisation.
The restrictions come in the wake of an agreement between major iron ore suppliers to increase prices by 65 per cent.
Taiwan’s government said it would not take any other steps to interfere in the market, such as demanding China Steel, the island’s largest steelmaker, to lower prices.
“Our domestic prices are already quite a bit below international levels,” said Chung Lo-Min, China Steel’s executive vice president.
Steve Chen, economic affairs minister, said that if domestic steelmakers were forced to further lower their selling prices, importers would become reluctant to sell in the Taiwanese market, further exacerbating the shortage.
Mr Chen said the government would help companies to pool steel purchases if they run into further difficulties in sourcing steel.
Ping!
Hillarious -
they artificially ceiling the prices,
then wonder why there are shortages.
The answer? Of course, ban producers from selling in markets where the price is market value.
Will government/leftist/socialist types EVER understand even BASIC economics?
it is the steel nazi’s....the tactics used to keep steel prices artifically high are just short of criminal..
It’s hilarious - and worrying - that the Taiwan Govt should be this idiotic.
I am not surprise. Taiwan’s current leaders were the 1970’s radical students who opposed Nationalist rule and the US for supporting the anti-Communist government which also is the barrier to Taiwan independence aspirations. With the fall of the KMT and rise of multi party democracy, the first thing the pro independence Taiwanese government did was ban the construction of nuclear power plants, piss off the KMT by walling off the Chang Kai Sek memorial park, and declare any Taiwanese who considers himself Chinese a traitor. Looking at the behavior of the pro independence politicians of Taiwan I see them mimic more of the European style socialists when it comes to social policies. These idiots did not build up Taiwan’s defenses (pro military was seen as too KMT like) because many of these former students resisted the military draft while in college, and when they realize that Communist China has been modernizing and building up in the last 20 years, they expect the US to furnish top of the line weapons for free and assumed that the US will always come to Taiwan’s aid if attacked. The money they generated from the economic boom in Asia was spent on housing, health, education, environment, and military spending stagnated and did not keep up with inflation. Recent polls showed that the Taiwanese elite (college students) by 70 percent want college deferrments or are willing to pay hefty fines so their sons are not required to undergo mandatory military training and compulsory service. Typical affluent Asian, my family like to make money, but let the poor farm boy do all the fighting. In the last Taiwan strait crisis, half the rich families had their military age kids’ bags packed and visas ready to run out of the country to the US or Canada. If Taiwan wants their independence, their leaders, leaders’ family members better start acting like John Adams and not like Bill Clinton before the US should risk lives and hard earned treasures to its defense. Increasing their defense budget and buying top of the line US equipment would be a good start. Note - talked to a South Korean buddy of mine. Their military training is so tough that they lose about 12 recruits a year. Talked to a Taiwanese buddy who is serious of defending Taiwan, he tells me during KMT rule the military training was rigorous and tough, like the KOreans, they would lose about 12 trainees per year. Ever since the KMT was booted out of power, if it is too hot out, training is called off. He doesn’t like the KMT, but he also thinks there are too many idiots in the Taiwanese government.
Don’t know if this is related, but practically all of the US “Brand Name” hand tool manufacturers outsource the manufacture of their products. Most of those that outsource to Tiawan seem to a decent product yet. Many of those that go to China do not.
Ping! Thought you might be interested in this article.
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