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Politics : Impeach George W. Bush -- Ignore unavailable to you. Want to Upgrade?

To: ManyMoose who wrote (15714)	10/21/2002 5:19:24 AM
From: zonder	Read Replies (1) \| Respond to of 93284

The answer is twofold: They are subsidized because no state wishes to shoulder the socio-economic repercussions of these giants going under, and steel is a mature industry with little growth prospects so not many large investments are done in this industry anyway. There was a wave of new plants when the thin slab casting technology came around, but that is over now. Steel is a true commodity and its prices are cyclical. So any investments that are done are done when the prices are at their troughs, so that they will sell when the prices are higher. These are capacity increase investments, rather than green field investments.