Commies on Coke
Little do we hear about the current steel shortages on the late night news, we do however hear about the soaring gas prices. Manufacturers often cannot get steel or must ration it heavily. New companies either must be entered on a waiting list or are turned away. Why is this, well the main reason is China reducing the amount of coke they are selling, coke is a key resource in manufacturing steel. China is also the world's leading producer of coke. China is also on a shopping spree of all scrap steel that is currently available and has caused steel prices to skyrocket. Other methods of making steel are deemed to be environmentally hazardous and much more expensive. Coke is the most efficient and environmentally friendly way to make steel, but if China corners the market on coke it will be very difficult to make steel in the environmentally friendly world today. There have been talks of adding tariffs to stop American companies form selling scrap steel to china, but I worry about any tariff after China took such advantage of the last steel tariff America adopted. If China does succeed in creating a monopoly on steel, than what action can or should be taken. But this does worry me, China’s expanding their navy. The only reason an expanded Chinese navy would have aim for in my mind is against the United States. Is it time for something to be done about steel production, or to try to allow the market to change this attempt on corning the market. I personally am not sure of the best course of action at the moment, when markets collide with international politics and old grudges anything can happen.