The global steel industry by the numbers, by Alanna Petroff, 3/2/18,
President Trump has announced a 25% tariff on
imported steel, sending shock waves through markets. The move could spark a trade war with major implications for steelmakers and the economy.
Here's a look at the numbers
behind the global steel industry: 1.7 billion metric
tonnes. When it comes to steel
production, one country is miles ahead of the pack: China.
It accounted for a whopping
49% of the 1.7 billion metric tonnes of steel produced globally last year,
according to industry group Worldsteel.
The European Union, Japan,
India and the United States round out the top five producers.
Steelmakers have in the past
accused China of dumping steel on other markets, pushing down prices, forcing
rivals out of business and killing thousands of jobs. The US and EU had sought to
level the playing field with targeted tariffs.
What's all that steel used
for? Half of global steel production goes into buildings and infrastructure,
which includes products such as beams and pipelines. Some 16% of steel is used
in mechanical equipment. Cars, shipping and rail transport also receive hefty
allotments.
When it comes to consumption
by country, China once again tops the rankings. It's followed by the EU, the
US, India, Japan and South Korea, according to Worldsteel. $29 billion
The US is the world's top
steel importer. The value of steel shipped into the US was just over $29
billion in 2017.
Nearly 17% of steel imported
into the US comes from Canada, according to S&P Global Platts. South Korea,
Mexico, Brazil and China are also major exporters to the US.
The new tariff could put
those countries squarely in the firing line.
Ben May, a director at
Oxford Economics, said that 88% of Canadian steel exports went to the US in
2016. The same is true for nearly three-quarters of Mexican steel.
China would be less affected
because its trade with the US is already restricted by American import controls
and duties.
The volume of US steel
imports is not very consistent. In 2014 they were worth nearly $38 billion, but
that figure declined to just over $22 billion in 2016.
Steel and aluminum, which
Trump has also targeted, account for about 2% of world trade, according to
Capital Economics. That may not seem like much. But other countries may respond
with trade actions of their own.
"The direct impact on the
global economy of the tariffs President Trump announced yesterday would be
minimal. But the fact that they are being justified under a flimsy pretext of
national security increases the risks of retaliation," said Andrew
Kenningham, chief global economist at Capital Economics.-- CNN's Jethro
Mullen contributed to this report.
Norb
Leahy, Dunwoody GA Tea Party Leader
No comments:
Post a Comment