ansteel boss cool on industry expansion, page-13

G'day wingedwarrior

The thing with china is ,at times the Chinese will have to do things that are not the norm like in western countries.
Going into oversupply in steel may cost them coin ,but that is easier and cheaper than to deal with unemployed or
underemployed people.The Chinese Govt is on edge with maintaining enough work for their people and on the other side the western world is in recession and are not consuming enough to keep china ticking over.( No job +no money= revolt)
It's hard for china to change over from mainly manufacturing and exporting to laying the foundation of internal consumption. (Chinese people do not trust the state and keep saving and banking their money.This is the money that will one day bring SDL into production)
So what Fezza333 is reporting is mostly true .The big steel mills are backed by the state and with that backing these mills will have to toe the line in lean years and keep production going to keep the people employed and in check.
Try not to look at China with your western eyes.


TW