WCA March 2017

From the Americas Mr Brant characterised Moia as one of the most ambitious of many such undertakings announced by traditional automakers in 2016. Some other competitors of ride-share leader Uber are focusing on hourly car rentals, with BMW expanding its ReachNow service in several USA cities. General Motors, meanwhile, is strengthening its partnership with Lyft, in which it has invested $500 million.  Speculation about a future of connected vehicles – in which messaging and other services are made available on-screen to passengers sitting with their arms folded – has centred on the driverless car. On 30 th November, Chuck Martin, who writes “IoT Daily” at MediaPost , reported on a driverless truck: specifically, one which had just successfully completed a 35-mile test by driving itself at highway speed on a four-lane divided road in Ohio. Later in the week, the truck, owned by the San Francisco-based ride-sharing service Uber, was scheduled to drive on the Ohio Turnpike. The maker of the self-driving truck is Otto, a company acquired by Uber a few months earlier for about $680 million. The tests were announced by Ohio’s governor John Kasich, a failed candidate for the Republican nomination for USA president, who characterised the first set of results as “what the future of transportation will look like.” A similar test was run in Colorado in October, with Budweiser shipping a load of beer on a truck that drove itself for a 120-mile stretch of highway. These are closely monitored tests, with backup drivers in the trucks ready to take charge if something goes wrong. But, observed Mr Martin, “So far, all have gone as planned.” The vocal champion of the USA steel industry in the White House will now be expected to make good on some extravagant promises “It will be American steel that will fortify America’s crumbling bridges. It will be American steel that sends our skyscrapers soaring into the sky. We are going to put American produced steel back into the backbone of our country.” These ringing declarations by Donald Trump, quoted by the Financial Times (London), were made during the run-up to election day in the USA. As of 20 th January, the date of Mr Trump’s presidential inaugural, he is in a position to start making good on his pledges. What may the steel industry expect? The FT recalls four steel-related commitments made by Mr Trump, and promptly dismisses two of them as unlikely to be very helpful: the easing or simplification of federal regulations; and cutting corporate taxes, which might spur growth in the economy but would only indirectly – and not appreciably – benefit some steelmakers. But the FT considers that two of Mr Trump’s promises hold definite significance for the steel sector: a huge Steel

investment in infrastructure, and a stiffening of USA curbs on steel imports. The proposal for a $1 trillion outlay for the construction and repair of roads, bridges, tunnels, rail lines and airports would certainly revitalise the domestic construction industry. The FT suggests that $100 billion a year in spending could increase USA steel consumption by six per cent. It notes that, if this were supported by a vigorously applied Buy America programme, American producers of steel long products such as rebar especially stand to benefit. As to anti-dumping action, blocking imports of low-priced steel, particularly from China, would tackle the global problem of overproduction that weighs on the USA and all steel-producing markets. Raining on the parade Reviewing the two policy options selected by the FT , Stuart Burns of MetalMiner pointed out that, despite widespread enthusiasm for the infrastructure spending initiative, Mr Trump can expect resistance from some Republican leaders in Congress – conservatives uneasy with the prospect of any large increase in government spending. Wrote Mr Burns, “[The new president’s] $1 trillion headline-grabbing figure may well have to be compromised for the plan to get approval.” The American market share taken by steel imports rose from 20.9 per cent in 2010 to 29.1 per cent in 2015. Even so, Mr Burns observed, a strong anti-dumping push “may incur opposition through the World Trade Organization that would slow or limit potential action” by Mr Trump. (“The Challenges President Trump Will Face Boosting American Steel,” 5 th December)  It is worth mentioning here that Mr Trump will perhaps have an unusual advisor – and ally – in any imports-related initiatives he might launch. Dan DiMicco, former chairman and CEO of Nucor Corp, the Charlotte, North Carolina-based steel mini mill, headed Mr Trump’s transition team. Mr DiMicco was, at this writing, believed to be the president’s choice for the office of US trade representative.  Ironically, noted MetalMiner , Nucor is the American steel producer that has reacted most effectively to the threat of steel imports. In the face of intense competition from imports, Mr Burns wrote, the firm “has invested and innovated, improving efficiency and reducing the cost of production such that Nucor, today, is better able to cope both domestically and internationally than any other steel producer in the US.” USA steel-consuming manufacturers warn against potential ‘devastating impact’ of high duties on tool steel imports The US International Trade Commission (ITC) is considering imposing anti-dumping and countervailing duties on carbon and alloy steel cut-to-length plate from Austria, Belgium, Brazil, China, France, Germany, Italy, Japan, Korea, South Africa, Taiwan and Turkey.

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Wire & Cable ASIA – March/April 2017

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