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Walker’s World: Oil price trade threat

Posted by Matt in June 26th, 2008

Asia’s troubles are about to get a great deal worse, because Asia is becoming a victim of the rise in energy prices in an even more spectacular way than higher gasoline prices.

Consider, for example, why it is that China’s steel exports to the United States are dropping at a rate of 20 percent this year. The answer is simple: shipping costs. China has to import the iron ore by sea from Brazil or Australia, make the stuff, and then ship it across the Pacific to the West Coast.

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