From the AFR comes a torn Turnbott:
“The President and I … discussed the very serious issue of the overproduction of steel globally, the steel glut. We talked about the impact this was having on steelmakers in the US and, in his country and in Australia, and we discussed the position in Whyalla as a very highlighted example of the challenges that we’re facing through these very low steel prices,” he said.
“The President and I have agreed that Australia and the US will intensify our collaboration to ensure that the overproduction of steel is addressed.”
Australia and the United States, along with countries such as the United Kingdom, will pressure China through the World Trade Organisation and the OECD. Mr Turnbull and Mr Obama agreed that a unified approach would have a greater chance of success than each country making various representations.
It already appears that China may have played some role in Turnbott’s French subs pork, now it’s pressure from the other side. One could see this as less troubling than it appears. If China is forced to curb steel output then the global price will rise and that would not be bad for iron ore. However, it would probably not be good for Aussie iron ore market share given that would lead to higher European and the US steel output both of whom would source more local product.
