From Bloomberg, Jun 18, 2015
“Chinese steelmakers are deepening the first production cuts in a quarter century”…
As manufacturing steel production drops, there are economic signs to look for.
Possible “dumping” of finished steel.
Stockpiling of Chinese imported iron ore and coke.
More investor uncertainty about emerging nation blueprints for new mines, ports, and railways.
To read the entire Bloomberg news report, go to http://bloom.bg/1GTU0PI
Crude steel output will shrink as much as 2 percent this year, according to the China Iron & Steel Association. That is the first contraction since at least 1990.
A recent up tick in raw material costs for steel and a collapse in steel prices has pushed the Bloomberg Intelligence China Steel Profitability Index to the lowest in almost seven years.
To understand more about the prospects for adding more to the supply side of global trade, we need to know even more about the market demand side. As China’s growth slows… …so too will the need for more and more imported resources from greenfield projects.
So which greenfield projects will still be needed?