Has a nice ........RING.....to it? Doesn't it? Made in Ontario-Canada.

When you read below, you'll get a kick in confidence in your ROF stock portfolio and focus on other stuff rather than current share price.

Let's start off with this Carbon tax article....to warm up our muscles.

https://www.thestar.com/news/canada/2016/09/18/ottawa-willing-to-impose-carbon-price-on-provinces.html

The Liberal government has won international accolades for picking up the climate change baton, with Trudeau and McKenna receiving praise for helping the Paris climate change agreement come to fruition last fall.

But UN Secretary-General Ban Ki-moon is in a hurry to ratify the pact, and has been lobbying countries to get that done before the Nov. 8 U.S. presidential election in hopes of locking in the accord’s provisions for at least four years.

=====================================================

Look at the big hurry to jam carbon tax down throats.. around the world....what impact does this have?

As an example...if you are Arcelormittal the largest steel company in the world...it affects what you do.

If we look at the Automotive sector Arcelormittal accounts for approx 17% of the world supply of Automotive steel.

Look at this recent Joint Venture to create a "made in India."

http://timesofindia.indiatimes.com/city/delhi/ArcelorMittal-SAIL-JV-to-be-operational-by-December/articleshow/53652912.cms

The Minister said the JV plant by the world's largest steel maker and India's biggest steel producer will also focus on producing specialised grade steel products for defence, space and automobiles.

When we look at this deal..it makes good sense for both parties. India has a growing population needing cars AND manufacturing this particular stuff (defence..space Automobile ) steel ....in India makes sense.....Now...

Carbon tax makes companies rethink strategies. It promotes one stop shopping.

Close proximity of raw materials to make your goods....suddenly becomes MORE important.

...because if you shop around looking for the best deal ...all around the planet...you will be carbon taxed to death by transportation needing fossil fuels….to bring it to your manufacturing plant.

So...build as close to the source of materials as possible......to save money.

We know India has a good amount of Chromite....

http://ibm.nic.in/writereaddata/files/09162014114959Monograph_Chromite.pdf

and look at what the Arcelor JV will be making...Defence steel (needs stuff like... chromium), space(needs stuff like ... chromium), and my favourite.....automotive steel (needs stuff like... nickel and chromium).

========================================================

Let's for a minute focus on ....my favourite...automotive steel.

India wants to move to the third position...in the car world... where do they sit right now? Who sits at the top? Where do Canada and the USA rank? Who gets bumped if India goes from 6th place to 3rd place?

http://worldknowing.com/top-10-largest-motor-vehicle-producing-countries-in-the-world/

If India moves from 3rd place to 6th place…they bump (Japan, Germany and South Korea).

If you were one of these three countries…would you let India overtake you? Would you just sit and do nothing?

Folks like Arcelormittal are looking at carbon tax but also the vehicle emission standards link below:

http://www.c2es.org/federal/executive/vehicle-standards

lighter cars get better mileage. A lighter steel would help to achieve this. But, there can be no compromise on safety. The steel must still be strong to be safe during crashes.

And there is the competition from…the aluminum industry….but think of the total emissions..

A good link below. Look at the conclusions section on the last page.

http://www.worldautosteel.org/download_files/Auto%20Mass%20Benchmarking/07_WorldAutoSteel_AutoMassBenchmarking_LCA_20160125.pdf

This link below is the killer link. Pay attention to Arcelor’s lightweight steel (usibor )

http://www.forbes.com/sites/greatspeculations/2015/05/20/trends-in-steel-usage-in-the-automotive-industry/2/#2f8eff711410

What are the ingredients to make usibor….chromium is one of them.

What about Ontario-Canada? What about the fact that all ingredients to make stainless are located within a 500km radius conveniently located in Ontario?

Is that an attractive feature for the steel making folks…

Let’s focus on the Automotive steel sector again. Would it not be a low cost solution to build in Ontario….too?

We have the ingredients located close together.

Look at this link below:

http://windsorstar.com/business/premier-wynne-discusses-growth-with-new-partners-in-auto-sector

Wynne said she is optimistic that the new partnerships and ongoing discussion will bring growth to the automotive industry.

We certainly have seen Wynne and Mark Dayton, Governor of Minnesota …talking…

https://news.ontario.ca/opo/en/2016/06/great-lakes-and-st-lawrence-governors-and-premiers-release-first-ever-regional-maritime-strategy.html

Constructing a second "Poe Class" Lock in Sault Ste. Marie, Michigan, to ensure the movement of vital raw materials like iron ore and coal

This new strategy will strengthen our region's economic competitiveness in the global marketplace. These investments will make it easier, faster, and cheaper to move iron ore and other goods from here to other U.S. and overseas markets," said Minnesota Governor Mark Dayton

+++++++++++++++++++++++++++++++++++++++++++++++

We have the goods, we are working on better infrastructure and then we need to bring it on home…right to Ontario-Canada.

I’ll go back to my question earlier in my post.

If India moves from 3rd place to 6th place…they bump (Japan, Germany and South Korea).

If you were one of these three countries…would you let India overtake you? Would you just sit and do nothing?

What about partnering with folks like Arcelor and paying Japan and South Korea a visit…to talk about more ..automotive investment right here in Ontario? Arcelor has the leading technology for light automotive steel, Ontario has the goods conveniently located (just like India)…we have the skilled workforce…gov’t is working on better infrastructure to move goods.

Why not pay these folks a visit? As you can see from the link below …that is already planned.

http://www.canadianmanufacturing.com/exporting-and-importing/wynne-plans-japan-south-korea-trade-mission-174336/

The mission will include a business delegation from Ontario and focus on opportunities in the automotive industry

The trade mission will take place between late November and early December

=========================================================

In Ontario, Essar Algoma is a competitor of Arcelor’s Dofasco in Hamilton

IN Ontario US Steel is a competitor of Arcelor’s Dofasco in Hamilton

Both ESSAR Algoma in Sault ste Marie and US Steel in Hamilton are….in ....chapter 11 bankruptcy.

Much like the 75% consolidation that occurred in the ROF claims…we will see a consolidation in the Ontario steel making folk.