John Wolz

Editor�s Note: The following is presented by Taiwan-based Fastener World magazine as part of a news column exchange with FIN.

The German Business Daily recently reported that the global steel market is in a very tense situation with falling steel prices despite record consumption. The crisis is even worse for countries outside of Europe. U.S. steel prices have been sliding since May, and the price has reached its lowest point since 1998. \
At the end of 1998 the retail price for hot-rolled steel sheet was only US$180 per ton, the lowest since 1996. Hot-rolled steel sheet is the most common product in the hot-rolled steel category. Its price had climbed to US$300 per ton last February but has fallen to $200 as of September 2000.
Helmut Julius, director of German Ferrostaal AG, predicted steel prices will fall another $10 to $20 U.S. dollars per ton.
According to a spokesperson for the Thyssen-Stahl company, U.S. hot-rolled steel sheet prices have fallen already; however, the main market in Western Europe has not yet got caught up in this spiraling situation.
The D�sseldorf-based German Steel Business Alliance holds a similar opinion. Despite the steel retail price decline, factory prices are quite steady. Between February and September 2000 Western Europe�s factory price even increased.

U.S. Terminates Chrome-Plated Lug Nuts Dumping Regulations Against Taiwan
The U.S. International Trade Committee (ITC) terminated its chrome-plated lug nuts dumping regulations against Taiwan.
This decision should not have a negative impact on the U.S. fastener industry.

Imported Steel Drastically Increases
An official from the U.S. Department of Commerce International Trade Office visited Taiwan recently and announced that the U.S. steel industry will seek anti-dumping regulations against Taiwan, China, the Ukraine and India.
Major steel export increases to the U.S. are having a negative impact on domestic steel production and the labor market.
British trade officials are also discussing steel export issues with the Taiwanese government.
The Taiwan Economic Bureau International Trade Office recently invited the Steel Association and related businesses to discuss a strategic plan for responding to possible U.S. trade regulations on Taiwan�s steel exports to the U.S.
Lin Yi-Fu, vice minister of Taiwan�s Ministry of Economic Affairs, said that since 1998 the volume of steel imported to the U.S. from Taiwan, China, the Ukraine and India increased drastically, thus causing U.S. domestic production to be reduced and increasing unemployment. The vice minister pointed out that in recent years the volume of U.S. imported hot-rolled steel from Taiwan increased greatly. He hopes that Taiwan�s steel industry can understand the situation and react to it quickly.

China Steel Acquires Malaysian Companies
China Steel Company announced it purchased majority stock positions in two Malaysian companies, Yen Ma and Chun Ma.
China Steel used Malaysian dollars equivalent to US$53 million for 70% of Yen Ma shares and 60% of Chun Ma.
The purchase gives the Taiwan steelmaker potential for expansion in Malaysia. China Steel president Wang Jung Yu describes it as a strategically significant move.
ASEAN countries are expected to form a free-trade area by 2003, and through investing in Yen Ma and Chun Ma, China Steel can establish a sales channel to this area.