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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: MSI who wrote (46639)	2/24/2004 7:39:43 PM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

<<He says, "China's taking it all" !>> Yup, sure looks it on this end, lots of steel all about, thanks to Greensputin's cheap money.

To: MSI who wrote (46639)	2/24/2004 7:59:01 PM
From: EL KABONG!!!	Read Replies (2) \| Respond to of 74559

MSI, He says, "China's taking it all" ! Does that compute? From everything I've seen and read, yes, it surely does compute. Not only are the Chinese purchasing for immediate construction and manufacturing needs, they are also stockpiling steel (and raw ore) for anticipated needs somewhere down the road, at which time steel products are expected to be nearly double the current price ranges. The Chinese needs are so intense that, like a dry sponge, they have soaked up nearly all excesses in the steel industry in less than 18 months. Overcapacity is, for now, a distant memory in steel... But like the weather, just wait around a bit. Things will change quite rapidly as the Chinese develop and expand their own steel industry (likely within the next 24 to 36 months), and then "overcapacity" won't be a strong enough word to describe the situation... KJC