massive over-capacity in China's steel industry is the reason, see below. Cant see any would be iron ore producer getting off the ground in next few years. BLF, what do you think this means for the ferro alloy base metals? I'm thinking nickel, zinc and other metals dependent on the steel industry should stay weak long term, any thoughts?
21st Century Business Herald: China's stimulus plan for steel will limit production China plans to reduce its crude steel output to 460 million tons this year, and will cap production at about 500 million ton in 2010, since there is an oversupply of the material, according to the three-year stimulus plan for the steel sector that was released by the National Development and Reform Commission (NDRC) on Monday. (BBG)
AXO Price at posting:
11.5¢ Sentiment: None Disclosure: Not Held
