Outcry across the board about China etc dumping steel on the world market and depressing prices. Causing steel works closures and layoffs here.
But when Saudi, etc dump oil on the world market depressing prices and causing layoffs in the UK oil industry, it's a good thing?
You have to understand that everything is everyone else's fault. Then it all makes sense.
NT
The ME oil industry is bent on destroying it's competitors' ie fracking and renewables. Normally they cut back in supply in order that prices are maintained.
The Chinese are doing exactly the same with steel ie selling it below cost which they can afford to do.
When the competition is closed down, they will have a near monopoly.
Which is why there is a case for state intervention, all this is about power and politics, not market economics. Once a steelworks is shut down, it's very hard to reopen it. Expertise is dissipated and the plant deteriorates quickly.
Spoken like a true socialist, Harry.
I heard someone on the radio ?yesterday saying that China steel wasn't the main problem, but that the strong UK pound relative to the weak euro was a major problem, making our steel exports expensive.
Yes yes: perfectly correct. We are suffering the unfortunate consequences of the _wonderful_ job that our Government is doing with the economy. Smoke, mirrors, etc etc etc
J.
Of course they are. Oil prices are set by supply and demand. Same as all raw materials.
All standard capitalist strategies. The strong survive, the weak go under. Just up your street.
I don't f***ing believe it. ;-) What paper have you been reading today, harry? The Mail sold out?
Depends on how you define your terms.
"Dumping" for the purposes of anti-dumping tariffs (and the WTO etc) means selling at less than cost of production/less than price in home market. Last time I looked the Saudis produce oil at around USD 20 a barrel - still well below the market price. So they aren't "dumping" by that definition.
Some have described what the Saudis have been doing as "dumping" because they are not optimising their income, But that's not the same meaning as is being used by those asking for action against the Chinese and others accused of "dumping steel".
This is not capitalism. The Chinese government is subsidising its steel producers for political reasons. In fact it's a typical f****g socialist ploy, using taxpayers money to distort the market. We should put an import tax on it until they desist.
It's exactly what happened with the US oil refining industry a couple of centuries ago. Cut prices so you put the opposition out of business, then you have a monopoly and can charge what you want.
Of course the US in those days was a bastion of socialism.
There was an article recently (Graun?) claiming that current Saudi production marginal cost was (iirc) $50, somewhat below current market price; together with a graph of "Total assets" showing this declining.
No we're suffering because the EUSSR is near totally f****d thanks to the brain dead socialists running it. It's economy is near to collapse.
And nothing to do with the sanctions we've imposed on it?
It was so much better under the Tsars. If you were a Tsar, of course.
Might well be less. The figure I heard when working in another arab country was actually much less. See link below for oil price history:
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