Controversy over Jerusalem construction work

Jerusalem, one of the most sacred and religious cities in the world is about to get a slightly modern makeover. Due to a surge in housing demand and the quickly increasing housing prices within the city, a private developer has been granted permission to build 100 new homes. Construction within the city has long been a controversial issue with construction work only ever taking place if it factored renovation works or was a reconstruction of traditional builds.
Washington, a close friend of Israel, has always been against governmental decisions to complete any modern construction work within the city, due to its religious standing. Nevertheless, the country believes the time has come where their capital city now needs to begin moving with the times. Justice Minister Ayelet Shaked said, “The US is a big friend but in the end, Israel needs to do what is beneficial for itself as a country.” The newly constructed buildings are expected to accommodate growing populations, imcorporate new technologies and provide a better economic future for the city.
A number of construction companies will be bought in to embed the essential skills and technology expertise required within the region and reduces the time ofconstruction. Portuguese company Mota-Engenharia e Construcao, SA and Turkish company Yilmazlar Construction Group will undertake vital works, alongside a multitude of Chinese construction firms: Beijing Construction Engineering Group International, Jiangsu First Construction Corporation, Everbright International Construction Engineering Corporation, and China Huashi Enterprises Company.
It must be a difficult position when you are home to one of the most religious, and sentimental places on earth to find methods of enhancing your countries future without damaging the past.

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Why is Chinese Steel so prevalent in the US presidential debates?

Two consecutive debates between Hilary Clinton and Donald Trump, the two presidential nominees, have now seen the topic of Chinese steel crop up. It can be viewed as quite surprising that the nominees would opt to discuss international trade of Chinese steel; due to the fact in the grand scheme of things it’s not something that directly affects many potential voters.
In the second debate, trump had also brought up the matter of Chinese steel, however, this time it was Clintons turn to utilize the topic. “One of the biggest problems with China is the illegal dumping of steel and aluminium into our markets,” Clinton said in last Wednesday’s debate. Following on from this, she went onto attack Trump, targeting the fact that he had used cheap Chinese steel in his real-estate projects.
Clinton was referring to a continuing legal dispute between several Asian countries and other nations around the world over subsidies for steel. In June, the U.S. International Trade Commission ruled that Chinese and Japanese subsidies were causing economic injury to the American steel industry. In August, the European Union imposed punishing tariffs on certain types of Chinese and Russian steel in retaliation.
On the contrary to popular belief, a number of researchers find that American citizen do not base their opinions of international trade on whether or not their jobs is within industries or occupations that are directly affected by competition from overseas.

Instead, research found that the attitude of American citizens is more closely related to America’s position and status on the global stage. Therefore, it would be on a reasonable to basis to assume that Clinton and Trump are discussing such a topic in a bid to lure citizens whom feel the power of the United States is declining.

The China – EU steel conflict goes on…

After it was announced on Friday that the EU had set higher import duties on two popular steel products from China, the country has hit back labelling the investigation methods as ‘unfair’. China’s commerce ministry have led the protests against the decision, labelling it “unfair and unreasonable” and “seriously damages the interests of Chinese enterprises”, due to it being a method commonly used against non-market economies.
The duties have been imposed after recent outcries of concern over the declining state of European steel industry; Britain alone has seen 5’000 jobs axed this year, primarily down to the collapse of Tata Steel UK. The EU has largely blamed China for the declining European Steel market, accusing them of dumping ludicrously cheap steel on the market, which doesn’t give competitors the opportunity to compete.
However, China who is the suppliers of 50% of the world’s steel and the largest consumer of steel, have claimed that the accusations are unjust, considering Chinese steel products represent just 5% of the European Market and have said weak economic growth is the reason behind said problems. “China hopes the EU will strictly respect relevant World Trade Organization rules and fully guarantee Chinese companies’ right to protest,” the ministry said.
The EU’s duties are set at between 13.2 and 22.6 percent for hot-rolled flat iron and steel products and at between 65.1 and 73.7 percent for heavy plate steel.
The war of trade between the EU and China doesn’t look like ending any time soon, considering the EU are still debating whether to grant china ‘market economy’ status, something China firmly argues is a given right considering in December they will have been a member of the World Trade Organisation (WTO) for 15 years. The commission has said that China is not a market economy and that it would not recognize it as such, but would adopt a new method to set duties that would abide by WTO rules.

EU set large import duties on cheap Chinese steel

The EU has imposed import duties of up to 73.7% on cheap Chinese Steel being imported into the European Union; the penalty has come about in response to manufacturers being forced to cut jobs after a flurry of cheap imports from China.
Britain has been one of the worst hit places within the EU, with thousands of jobs already being lost this year and many more seriously under threat. Many of the industryleaders put cheap imported steel as the primary reason for this claiming that such cheap prices are making it increasingly difficult to find buyers domestically.
The EU has agreed to impose import duties of between 13.2% and 22.6% on Chinese hot-rolled steel, which is used in pipelines and gas containers, and 65.1% and 73.7% on heavy plates, which are used in civil engineering projects. UK Steel, the trade body for the industry has welcomed the much needed tariffs but has warned that the levy on hot-rolled steel might still not be enough and could fail to deter the dumping of cheap steel.
David Martin, Labour MEP for Scotland, said the tariffs may be “too little too late” for the UK industry.
Martin, the international trade spokesman for the Socialist and Democrats group in the European parliament, said: “The commission has recognized that Chinese dumping is having a real, damaging effect on EU steel producers and the communities supported by them.

“However, whilst the tariffs on heavy-plate steel are at a workable level, the duties on hot-rolled steel – a crucial product of Tata Steel’s Port Talbot plant – won’t deter Chinese steelmakers from further dumping. I sincerely hope these duties will be revised upwards at a later date.
The future of Port Talbot and Tata Steel’s 11,000 UK staff remains unclear as the Indian company considers a merger with German group ThyssenKrupp and tries to negotiate a rescue package with the UK government.
Regardless of if the tariff is high enough; it is going to be an interesting few months within Europe to see the effects of the newly installed charges. One would assume that if the results do not meet expectation, then EU will be quick to impose further tariffs.

Good news for the British Steel industry!

In what is long overdue after months of fear and protests over the loss of thousands of jobs in the UK Steel market, there is finally something to be cheerful about. Tata Steelwas the catalyst for the protests from British workers, who were campaigning for the saviour of their jobs, after the company made the decision to cancel their manufacturing operations in the UK. The decision from Tata Steel left at least 2’000 jobs effected directly and up to 8’000 at risk due to related businesses being affected.

However, after some anxious few months, a company in the form of Industrial and commodity group Liberty House have made a bid in an attempt to reduce at least some of the arrears. Liberty House have made a bid which is understood to be in the region of £100 million for three of Tata’s steelwork depots, these being in Rotherham, Stocksbridge and Hartlepool, they employ 1’235, 831 and 501 workers respectively. Liberty House has already purchased the Scotland business operations from Tata Steel, so these new acquisitions will add and improve to their ongoing portfolio.

The bid has not yet been accepted as its understood Tata are still in talks with a number of other interested parties, in addition to this, Tata are also still in talks with German rival Thyssenkrupp over a possible mergence, which would include the acquirement of the UK operations. However, they have continued to discuss the sale of separate areas of their UK operations and will go ahead with them should offers be concluded before any deal is made with Thyssenkrupp.
Although, it is only a quarter of the workforce that is likely to be saved from this particular deal, it is good to see Tata have interested parties and the

Base Metals shows a collective decline

Across the board on Monday, base metals saw a decline which is a reflection of weak stock markets in Asia whilst also suggesting a revival from the dollar.
In Asia, the Shanghai Composite was last down 1.76 percent at 2,980.429 while the dollar index was last at 95.39 having recovered from selling pressure last week following news that the US Federal Reserve would not raise interest rates his month.
Last week all market eyes were on the FED of the US and the Bank of Japan, whom were both making significant policy announcements. However, all eyes have taken a turn towards politics with the highly anticipated first debate of the Presidential election race taking place between Hilary Clinton and Donald Trump; it will be interesting to see how the base metals market reacts on Tuesday.
In the metals, copper at $4,820 per tonne was down $35 on the pre-weekend close, while around 4,000 lots have changed hands on Select so far. There were further deliveries into listed warehouses in Busan, Gwangyang, Port Klang and Singapore – total stocks rose a net 7,250 tonnes to 364,125 tonnes and are holding around one-year highs.
Aluminium at $1,626 was $11 lower although stocks continued to fall. Inventories were down 10,700 tonnes to 2,136,025 tonnes due to decreases in Vlissingen and Singapore. Cancelled warrants rose – metal that had been warranted into Asian sheds was cancelled – to 881,350 tonnes, up 14,250 tonnes.


Lead at $1,910 was down $19.50 on talk that Trafigura will rewarrant large tonnages into Europe. Moves today, however, were marginal, with just 300 tonnes arriving into Leghorn. Stocks rose 250 tonnes to 191,250 tonnes while cancelled warrants fell 50 tonnes to 66,150 tonnes.
Zinc at $2,251 was down $14; stocks fell 650 tonnes to 442,000 tonnes. Nickel was $200 lower at $10,460 although it continued to find support from news of mine closures in Philippines. Traders also noted that the metal looks positive from a technical perspective.
Tin at $19,630 was $15 lower. Stocks were unchanged at 3,715 tonnes but cancelled warrants rose 95 tonnes to 1,955 tonnes, dropping on-warrant material to its lowest since 2005 at 1,760 tonnes.
Still, investor sentiment looks brighter – according to CFTC statistics, they nearly halved their net short positions on Comex to 19,600 contracts in the week to September 20 mainly via short-covering.

Among major steel producers, India is growing the fastest

The month of August saw India making the fastest levels of growth, among the world’s major steel producers. As a country, India produced 8.4 million tonnes of crude steel, an impressive 9.4% growth from the same period last year; the growth is even more impressive when you consider that global increase was just 1.9%. 

China, who are by far and away the world’s largest producer of steel saw a steady growth of 3% from the corresponding period last year, 68.6 million tonnes of Steel was produced. In comparison, Japan, the world’s second largest producer of steel had an output of 8.9 MT, which was an increase of 1.5%. Among the other big name producers of Steel, the US produced 6.7 MT, Russia 5.9 MT and South Korea 5.8 MT. 

Outside of the top 6 but still within big producers, Turkey made the most significant growth in August with a 12.9% increase, seeing them produce 12.9 Million tonnes. 
Currently the third largest steel producer in the world, India’s production has been growing constantly since the beginning of the current year. During the first eight months of the present year, India’s production growth has been the highest at 5.6%.

Considering the small gap between Japan and India and the respective growth rates, it surely can’t too long till India find themselves as the 2nd largest producer of steel in the world.