The lead article on today's "Daily Reckoning" states that:
"--Bloomberg reports that Posco is cutting stainless steel production by 25%. It's doing so doing in response to falling demand. Finally, the slow down in the U.S. and the weakness in Europe (especially in Germany and the U.K.) may be catching up with steel."
Posco is a Korean steelmaker and I believe it has a substantial stake in and offtake agreement with MMX.
My concern here is whether this has anything to do with China. I would expect (hope) not on the basis that Korea is an export driven economy without the huge internal demand of China.
Still, articles like this will further weaken confidence in Iron Ore shares and we need some more major announcements from WR before the market gets much worse.
BRM Price at posting:
$1.26 Sentiment: Hold Disclosure: Held
