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Worldwide Steel Production & AK Steel??

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Category: Middletown Area Business
Forum Name: AK Steel in Middletown, Ohio
Forum Description: AK Steel in Middletown Discussion
Printed Date: Jun 07 2023 at 8:16am

Topic: Worldwide Steel Production & AK Steel??
Posted By: Analytical
Subject: Worldwide Steel Production & AK Steel??
Date Posted: Jan 27 2016 at 6:52pm
The Stansberry Digest -- 1/27/2016 -- Worldwide Steel Production & AK Steel??

...............Changing gears a bit, we have more evidence that the global economy could be slowing…

Regular readers know commodities have been crushed over the past few years. Those with industrial uses – like copper, aluminum, zinc, iron, and steel – have been hit especially hard, as consumption in China and other emerging markets has collapsed.

Today, we learned the situation is unlikely to improve anytime soon…

Research firm Macquarie noted this week that supplies of steel – one of the most widely used of these metals – still dwarf demand.

It's so bad, the firm says 250 million tons of steel production capacity will have to be taken off the market just for steelmakers to make a profit again. To put this in perspective, all of Western Europe produces just 170 million tons a year.

In other words, despite the devastation in steel already, you could shut down all the steel producers in Europe and prices
still wouldn't be high enough for the remaining producers to make a profit.

Unless we see a dramatic rebound in the economies of China and other emerging markets, expect the prices for steel (and other industrial metals) to stay low for some time.

Unfortunately, the latest data suggest things are getting
worse, not better, for the global economy.

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