NZ exports to China hang in the balance as NZ toy with WTO complaint

via ABC

via ABC

Whaleoil broke the story via the Tipline over the weekend, and the SST followed up.  Overnight, our Tipline produced more background information.  Like before, this is to be considered unverified and the personal opinion of the tipster.

BlueScope (BS) also has steel making facilities in mainland China.

Be interesting to see what pressure is applied to BS senior management there.

BS corporate HQ would have been very aware of the issues/counter measures China would throw at BS by initiating this WTO inquiry angle.

Unlimited (central Govt) credit lines are available to Chinese SOE steel mills.

With corresponding colossal debt mountains.

Private mills in China are closing down hand over fist, as no Chinese bank extends said mills credit lines anymore.  (Toxic industry, I think is the term used in the financial circles)

Rustbelts aplenty in many parts of China now.

It is the credit lines to the SOE mills that is really a form of State subsidy the has distorted the global steel price.

Most nations consider their own steel mills as a strategic asset, as in the domestic integrated capacity to build weapon platforms (tanks, ships, subs, etc).

Once these mills and their skill base is gone, you will never get the mills/steel back when you most need it. Read Wartime production.

 

– Whaleoil Tipline


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