According to Keyvan Jafari Tehrani, the seizure of the property of Japan’s Nippon Steel Company by a South Korean court and the escalation of disputes between the two major global economies could severely strain the market and affect the steel trade.
The world steel market is experiencing many challenges these days. From the Corona crisis to international issues and the emergence of tensions between the world’s major economies. Issues that will inevitably cause a lot of fluctuations in the purchase and sale of this product and will generally affect the steel market in all countries, including Iran.
According to analysts, rising tensions between South Korea and Japan, the world’s two largest economies, could lead to new developments in the global steel market. We now see that a court in South Korea has agreed to seize the assets of the Japanese company in South Korea after the Supreme Court ruled that Nippon should pay compensation for forced labor during the war.
*** Threat to the Japanese economy
Thus, the differences between South Korea and Japan have increased and the future of the steel market is tied to how the two countries interact.
Steel market gets tense Economic market news Special offer Political industry Industries and mines Nippon Steel dialogue North Korea Japan steel World War II market convulsions
Accordingly, the senior analyst of the international iron ore and steel markets, in response to the effect of the seizure of the property of Japan’s Nippon Steel Company by a South Korean court, said: “The signs of South Korea and Japan can be the same for each other.” Strictly shake the market and especially affect steel.
Keyvan Jafari Tehrani added: Japan and South Korea are two powerful countries in the field of steel, but in my opinion, despite the fact that Japan is the third largest steelmaker in the world in 2019 with 99.3 million tons of steel and South Korea is the sixth largest steelmaker with 71.4 million tons. But South Korea’s steelmaking power will outperform that of Japan in 2020 due to the lower impact of the Corona outbreak, and the conflict that has ensued could severely threaten Japan’s economy.
*** Celebrating the independence of the two spheres
Explaining this issue, he pointed out that August 15 (August 25) was the anniversary of the independence of North Korea and South Korea from Japanese rule in World War II, said: It was exactly August 15, 1945, after the defeat of Germany and Japan. During World War II and the US bombing of Hiroshima and Nagasaki, Japan was forced to relinquish control of the Korean Peninsula and leave the country.
“August 15 is the only day in North Korea and South Korea where a joint celebration is held as the two Koreas’ independence and separation from the Japanese leadership,” said a senior analyst for international iron ore and steel markets.
*** Rising tensions between Seoul and Tokyo
Steel market gets tense Economic market news Special offer Political industry Industries and mines Nippon Steel dialogue North Korea Japan steel World War II market convulsions
He continued: “Just 10 days before the celebration, we saw the escalation and tensions between Tokyo and Seoul, so that the Supreme Court of South Korea approved Nippon Steel as the largest Japanese steel company in At the end of 2019 (early 2020) he joined the ArcelorMetal subsidiary, which must pay compensation to South Korea. Not only South Korea and Japan have been at loggerheads over this issue, but also Arcelor Metal.
Jafari Tehrani stated: The dispute between the two countries was about the use of Korean workers in World War II to make weapons, so that South Korea asked in court that Japan’s Nippon Steel should be compensated for the use of workers during this period. But Nippon Steel resisted.
According to the analyst, therefore, it was from last Tuesday that Nippon Steel property in South Korea was confiscated. Cases that led to serious differences between Japan and South Korea, followed by Japan threatening South Korea.
*** Stop exporting high-tech products
Jafari Tehrani stated: Following the request of South Korea from Japan, Japan also reciprocally stated that if South Korea continues to pursue this issue, the export of high-tech products that are currently used to make chips and monitors of the Korean company Samsung Takes, will stop.
“In World War II, Napoleon Steel and Sumitomo Metal were two Japanese steelmakers involved in building weapons using workers,” said a senior analyst for international iron ore and steel markets, who said tensions between Japan and South Korea had raised tensions in the Far East. They were Korean, and today Sumitomo Metal is a subset of Nippon Steel. In the current situation, South Korea has asked its big steelmaker, Posco, to include the confiscated property of the Japanese Nippon Steel as part of Posco’s property.
*** We will not be short!
He added: “Meanwhile, we witnessed that recently on the day of the celebration of the independence of the two Koreas on August 15, the President of South Korea” Moon Jae-in “announced to Japan on the country’s radio and television: Today is a great day for the two Koreas. It is north and south, but nevertheless, we ask Japan to pay the desired compensation, which provides the conditions for negotiations.
According to Jafari Tehrani, “Moon Jae-in” while inviting Japan to negotiate, surprisingly stated that we
By no means do I want to convey that I recommend for the mother to be inactive.
*** The turmoil in the world economy
Asked if it was true, former South Korean Foreign Minister Chang Ho-jin told Reuters that if Japan retaliated, Korea would be reluctant, the senior international iron ore and steel market analyst said. “If this happens, it will be a very dangerous event that will put the Korean Peninsula and the Far East in a very tense situation,” he said. And finally, the economic situation of the world will collapse.
Explaining this, he said: “President Trump is about 80 days away from the presidential election, which will be held on November 4, but since he sees his chances for a second term as president low, he tried to postpone the election and In the end, it failed.
*** Disagreement in favor of America
Jafari Tehrani stated: “This is while if a war takes place between these two major economies of the world, all attention will turn to the Far East and away from the United States.” Of course, we have always seen the United States disagree with the Korean Peninsula, Japan and even China on issues such as the islands in the Far East and economic issues.
According to the analyst, if the agreement between Japan and South Korea, which was signed in 1965, twenty years after World War II, is terminated, the differences between South Korea and Japan will eventually end in favor of the United States, leaving the countries with the United States. They have political problems, get involved in their internal affairs.
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