The following is from the 'Daily Reckoning'
Normally, you'd expect to see higher commodity prices curtail demand. But for both steel and oil (see below) you haven't seen any evidence yet that higher prices are slowing down demand. In fact, as this second chart from Macquarie shows, Chinese steel production is slated to grow by 10% this year. It even looks like the double bottom in steel production growth rates is in. Is it the beginning of a new steel boom?
Chart: http://www.dailyreckoning.com.au/images/20080507DRX.gif
FDL
flinders diamonds limited
