Andrew S. Mooney left the following comment at Tim Worstall on top form:
"That’s us, of course – we are all consumers of steel in tin cans, cars, fridges and the skeletons of lovely high rise buildings. This can indeed be seen as unfair on other producers of steel. But we don’t run the economy for the interests of producers; we run it for us, the consumers."
Funny.
I have not seen a reduction in the price of tinned food off of the back of these surpluses.
I have not seen a reduction in car forecourt prices...
Well why would you notice?
An average car contains one ton of 'steel'. I don't know what particular kind of steel, but...
Until either Chinese capacity is reduced or a resurgence in Chinese economic growth is realised, prices will continue to slide. The price of slab steel has dropped by 40% from around £318 a ton to under £191 in the past year.
Maybe car manufacturers use a higher grade more expensive steel. But the cost saving to car manufacturers is only a couple of hundred quid per car and of course you wouldn't notice that, quite possibly it's the car manufacturer who benefits from most of the cost saving. It's still our gain and China's loss.
If we do the same calculation for tinned food, we are talking fraction of a penny, which you wouldn't notice either.