2008-08-21 High Oil Prices Help Revive US Steel Industry

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Date:	2008-08-21 (category)
Link:	http://www.treehugger.com/files/2008/08/high-oil-prices-creates-jobs.php
Topics:	oil addiction US economy US-China relations
Categories:	oil addiction US economy US-China relations

High Oil Prices Help Revive US Steel Industry, Create American Jobs

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Jeff Rubin, chief economist for CIBC World Markets, and predictor of $10 gasoline, notes who is profiting from high oil prices:

Soaring transport costs, first on importing iron to China and then exporting finished steel overseas, have already more than eroded the wage advantage and suddenly rendered Chinese-made steel uncompetitive in the US market....China’s steel exports to the US are now falling by more than 20% on a year-over year basis—the worst performance in almost a decade. While many might attribute this decline to the slowdown in the US economy, it is noteworthy that US domestic steel production has risen by almost 10% during the same period.

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“Soaring transport costs, first on importing iron to China and then exporting finished steel overseas, have already more than eroded the wage advantage and suddenly rendered Chinese-made steel uncompetitive in the US market... US domestic steel production has risen by almost 10%...”