Urgency in dealing with Section 232 can be found by going beyond trade statistics

When news of the trade war between the U.S. and China in steel broke out in March/April earlier this year, the Malaysian iron and steel industry jumped into alert. Malaysia was, after all, caught by the Section 232 tariffs on steel and aluminium (for harming the local U.S. steel industry), and the first response was … Continue reading Urgency in dealing with Section 232 can be found by going beyond trade statistics

With consolidation on the horizon, related policies will need to be personalized in order to be effective

China's rationalization of its steel industry has taken a step further by instituting a personalized approach to output cuts. With environmental regulation still as their spearhead, authorities have elected to drop a "one-size-fits-all" approach—requiring steel producers to cut as much as 50% of existing output, regardless of their size and emission levels—and instead, will regulate … Continue reading With consolidation on the horizon, related policies will need to be personalized in order to be effective

Capitalize on bargain buys and brand positioning in future markets for strategic growth

The global steel market conditions over the past years have engendered distressed assets in the global steel industry, as steel players who were not financially strong enough to weather the storm were forced to entertain new investors at attractive offers. Given today's protectionist climate, buying into new markets may be more effective than attempting to … Continue reading Capitalize on bargain buys and brand positioning in future markets for strategic growth

The Malaysian steel industry may not win the capacity game, but that is not as disadvantageous as it would seem

Unlike most steel industries around the world, the Malaysian steel industry seemed to have "bypassed" blast oxygen furnaces ("BOF") right from the start. Historically, production of crude steel has been delivered solely through electric arc furnaces ("EAF"), which totaled 3.2 million metric tonnes in 2017. While EAFs may not yield the same economies of scale … Continue reading The Malaysian steel industry may not win the capacity game, but that is not as disadvantageous as it would seem

Lessons we are learning so far from the Section 232 fallout

It works. The Section 232 tariffs have begun to resurrect the U.S. steel and aluminium industries, as existing U.S. steel and aluminium mills prepare to reopen or expand production. There is a sudden resurgence as U.S. steelmakers rally. Reports indicate that the U.S. steel industry may return more than 7,000 jobs—nearly 40% of the 19,000 … Continue reading Lessons we are learning so far from the Section 232 fallout

Positive sentiments from China’s rationalization of its steel industry are marred by the escalating war on steel trade

As the Chinese government intensifies its commitment on rationalizing the overcapacity in steelmaking within its borders through tighter environmental regulations and policy-driven production cuts, the resulting outcome looks to benefit global steel industries, as the rationalization creates a healthier marketplace capable of supporting fairer steel prices and relaxation of anti-dumping trade measures. Unfortunately, the continuing … Continue reading Positive sentiments from China’s rationalization of its steel industry are marred by the escalating war on steel trade

Metal additive manufacturing will spur innovations in downstream steelmaking

There is good reason for downstream steelmakers to be more excited about additive manufacturing, as metal printing technology continues to advance up the curve, enabling more applications today than before, and as increasing adoption across sectors—downstream steelmaking included—will eventually lower investment costs down. The potential for stainless steel printing in domestic applications are particularly intriguing, … Continue reading Metal additive manufacturing will spur innovations in downstream steelmaking