Jump to content

Forgemasters so it begins?


Recommended Posts

Do you not wonder why China is making a loss at the moment? It's so they can wipe out the competition and then once they have an effective monopoly they can raise the prices through the roof. Much like the Saudis are doing with the oil. For once it would be nice to see our government(s) play the long game and start state subsidies on core materials to allow them to compete directly against China who are doing exactly that.

 

I'm not so certain. China's undergoing a giant economic experiment where they are trying to achieve socialist state controlled capitalism and it's not going very well outside the major cities. They have too much material and any price is better than no price but it's not sustainable for China and it's certainly not a reason for other economies to have a race to the bottom. Sooner or later the Chinese economy will have to adjust and socialism will have to follow.

Link to comment
Share on other sites

Do you not wonder why China is making a loss at the moment? It's so they can wipe out the competition and then once they have an effective monopoly they can raise the prices through the roof.
I disagree.

 

It's because the global levels of credit and consumerism that were sustaining China's growth majorly pre-2008, but dropped through the floor post-2008, have finally caught up with China to their full extent (now that the drop can't be offset by China's domestic levels of consumption so much, since these are tapering also).

Much like the Saudis are doing with the oil.
How's that working for them at the moment? :lol:

 

Saudis have a lot of oil, sure, and broader shoulders than most in a race to the barrel price bottom. But so do the US, Iran and Russia, with Iran and Russia hardly good bedfellows with the Saudis...and they all have a lot more to themselves than oil, unlike the Saudis ;)

Edited by L00b
Link to comment
Share on other sites

I'm not so certain. China's undergoing a giant economic experiment where they are trying to achieve socialist state controlled capitalism and it's not going very well outside the major cities. They have too much material and any price is better than no price but it's not sustainable for China and it's certainly not a reason for other economies to have a race to the bottom. Sooner or later the Chinese economy will have to adjust and socialism will have to follow.

 

Possibly. Hard to really know what's going on in China.

 

---------- Post added 21-01-2016 at 11:12 ----------

 

I disagree.

 

It's because the global levels of credit and consumerism that were sustaining China's growth majorly pre-2008, but dropped through the floor post-2008, have finally caught up with China to their full extent (now that the drop can't be offset by China's domestic levels of consumption so much, since these are tapering also).

How's that working for them at the moment? :lol:

 

Saudis have a lot of oil, sure, and broader shoulders than most in a race to the barrel price bottom. But so do the US, Iran and Russia, with Iran and Russia hardly good bedfellows with the Saudis...and they all have a lot more to themselves than oil, unlike the Saudis ;)

 

Give it 3-4 years and I reckon oil prices will be through the roof. I base this on my masses of economic training! :hihi:

Link to comment
Share on other sites

Been a while since I was on here, so picked a topic that is close to me. What is obviously apparent when looking at the letters was that there is still a huge numbers of totally ignorant people here spouting about what they appear to know little about. I worked at SF, and previously for BSC river Don for 42 years. If a company like SF is being hit by problems then the situation for all our manufacturing industries is very serious. SF makes highly specialised steels for oil, nuclear, mod, machine tools and similar industries. It is one of only 2 world companies that can make extra large castings. If companies like SF or even TATA fail, then as well as the workforce facing job losses, the the knock on effect to support companies and suppliers can be catastrophic. With the subsequent loss of taxable income, national insurance and possibly the loss of highly skilled jobs permanantly. SF is one of this countries best companies, and as with the other steel industries have been badly let down by sucessive governments, particularly the astronomic energy costs that competitors do not have. Our manufacturing industries, especially steel need and deserve all the help they can get.

Link to comment
Share on other sites

Most of this thread is way off topic. As SYRS has said SF are not steel producers as Tata or the cheaper steel that China is dumping, these are in bar or strip form.

SF produce's high spec steel, in billet or cast form, that they add significant value to it by machining etc. They may be in trouble because of the global market but the dumping issues will have little effect on SF.

Link to comment
Share on other sites

Been a while since I was on here, so picked a topic that is close to me. What is obviously apparent when looking at the letters was that there is still a huge numbers of totally ignorant people here spouting about what they appear to know little about. I worked at SF, and previously for BSC river Don for 42 years. If a company like SF is being hit by problems then the situation for all our manufacturing industries is very serious. SF makes highly specialised steels for oil, nuclear, mod, machine tools and similar industries. It is one of only 2 world companies that can make extra large castings. If companies like SF or even TATA fail, then as well as the workforce facing job losses, the the knock on effect to support companies and suppliers can be catastrophic. With the subsequent loss of taxable income, national insurance and possibly the loss of highly skilled jobs permanantly. SF is one of this countries best companies, and as with the other steel industries have been badly let down by sucessive governments, particularly the astronomic energy costs that competitors do not have. Our manufacturing industries, especially steel need and deserve all the help they can get.

 

I was being to think I was on my own! I at least can see there are a few like minded people here,,

Just about to throw the towel in and go to university and study law , !! Everyone else seems to be !!! Are they going to build big factories to house all these lawyers solicitors etc?? Will the price come down,? Will it become that we might as well forget about it all , because it's cheaper to use some one from China? The mind boggles, who's job next?? Where does it end?:loopy:

Link to comment
Share on other sites

Most of this thread is way off topic. As SYRS has said SF are not steel producers as Tata or the cheaper steel that China is dumping, these are in bar or strip form.

SF produce's high spec steel, in billet or cast form, that they add significant value to it by machining etc. They may be in trouble because of the global market but the dumping issues will have little effect on SF.

 

They are in trouble because there is little demand for what they are making. Jaguar Landrover, like the rest of the UK car industry is hitting record sales including exports. Indeed it is the exports that are driving their success, because whilst many shout about the hard times being experienced by the UK steel industry they still go off and support overseas manufacturers who build cars using non UK steel. 80% of UK car sales are imports. WHY?

Link to comment
Share on other sites

  • 2 weeks later...

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.