[ZTWsquared]

2001 ZTS,Mar 7 2009, 05:54 PM Wrote:

ZTWsquared,Mar 7 2009, 10:50 AM Wrote:

2001 ZTS,Mar 7 2009, 08:54 AM Wrote:US Steel has also idled there Lorain Ohio plant (~600 people). ArcellorMiltal is laying off its Cleveland plant (~1000 people). ArcellorMittal is also the parent of Dofasco in Hamilton the past few years and that location remains open so it goes both ways across the border.
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If the plants closed were the least efficient, then IMO it doesn't matter what side of the border they're on ... it's a valid business decision.

OTOH - US steel closed down its most efficient operation (ie: lowest cost of production) which happens to be in Canada, in favour of less efficient operations in the US. How, other than politics, can you explain this kind of decision?
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Market drivers. There is production cost and then there is the cost to the end user to deliver to where the finished product is needed. Right now there isn't a lot needed in Canada or the US. Finished steel is very expensive to transport or even to just store in inventory.
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I'm more than familiar with the concept, but I don't see how it applies in this case - - not trying to be argumentative but I continue to believe there is a significant political component to this decision that defies the production and market forces that would normally apply.