The Fed will increase interest rates for sure, but when it does so it will also stop its QE3 money printing, scheduled for October. Once US stops printing money its likely to increase market volatility, uncertainty, and consumer demand. None of which will be good for steel demand.
If RIO and BHP didn't think increasing supply wasn't a good idea they wouldn't do it. And they're not doing it to push AGO out of the market - you can probably count on one finger the number of people in each company who see AGO as a threat. They're doing it because (unlike AGO) increasing supply to a falling market prevents them from losing profit even though $/t falls. Its chicken and egg - market falls so you increase supply, but increasing supply pushes the price down. Who knows, it might go back to annual contract pricing, with the dominant producer deciding the price for everyone.
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