It's impossible to protect inefficiency, and it's impossible to stop national governments from investing in prestige projects. "Steel Capacity Continues to Outpace Need." That's dumb economics: the use of steel likely depends on the price of steel, which Our President and most of the domestic steel sector would like to keep high. Unfortunately, when everybody and Joe Stalin's brother continues to see steel as a prestige sector, "Many new investments continue to take place around the world and others are in the planning stages, including in regions where excess capacity is most prevalent."
For the moment, the tariff barriers are holding. "Steel trade continues to decline amidst increasing trade actions in the global steel market."
As the new capacity comes onstream, though, the rational thing for any mill manager to do is recover the avoidable costs of pouring steel, never mind the capital costs that are sunk.
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