ansteel boss cool on industry expansion, page-5

I attended a state of the Chinese steel industry conference in Shanghai last week. It was very sobering. Chinese steel company chiefs got up and pointed out in considerable detail in their pp presentations that there is considerable oversupply in steel for the foreseeable future. I saw no spin but real facts and figures. The biggest current problem is the cost of raw materials with IO taking 45% of their costs. Not one steel company is profitable, with most making losses or breaking even. The present news article comes a full week after this conference. There will be no expansion in steel over the next few years but, rather, contraction. I am sorry to be negative but this is what came out of the conference.