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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (5298)	12/17/2001 4:10:53 PM
From: MulhollandDrive	Read Replies (1) \| Respond to of 33421

"Overcapacity".....why? Steel Producers Meet in Paris The Associated Press Monday, December 17, 2001; 1:20 PM PARIS –– Delegates from major steel-producing countries opened a two-day meeting at the OECD in Paris on Monday to discuss global overcapacity in the steel industry. According to the Organization for Economic Cooperation and Development, total global steel capacity is 1 billion tons per year. In 2001, production is expected to reach 835 million tons, but consumption is seen at 721 million tons. Much of the excess capacity in the steel industry is making its way into production and thus depressing prices, according to the OECD. Grant Aldonas, the head of the U.S. delegation, estimated overcapacity worldwide at 200 million metric tons per year. Aldonas, undersecretary for trade affairs at the U.S. Commerce Department, said bankrupt steel mills account for a quarter of the total steel capacity in the United States. Market observers expect a report from the U.S. International Trade Commission – being sent to President Bush this week – to call for restrictions. Bush has two months after receiving the report to decide whether to impose controls. The United States has already taken a number of measures to try and limit steel imports from other regions of the world and has launched anti-dumping investigations against imports of "cheap" steel products. © 2001 The Associated Press