Ping!
Does this mean that it's only a matter of time before some peeps start flipping cars?
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EU Warns China Over Increasing Steel Exports
A simmering trade conflict between Europe and China is nearing the boil as state-supported Chinese steel companies ramp up capacity despite drastic cuts by the rest of the world.
By Ambrose Evans-Pritchard
Last Updated: 9:53PM BST 08 Apr 2009
ArcelorMittal, the world's biggest steelmaker, yesterday told its European workforce that production cuts of 50pc would continue indefinitely due to the "exceptional economic environment", raising fears that chunks of Europe's steel industry face closure.
"It is a catastrophe, particularly as management does not say when production will be resumed," Jaques Laplanche, secretary of Mittal's European Works Council, said.
A 166-page report by the European Parliament has accused China of systematic distortion of its steel market, resulting in "irrational capacity extension". This is promoted, it said, by "artificially depressed cost levels" and export rebates.
[snip]
Beggar Thy Neighbor begins?
Unrecognized past inflation in the supply chain, now deflating somewhat just like housing. But with unfettered printing of dollars, watch new durables rapidly climb since purchasing power will go down.