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Strategies & Market Trends : True face of China -- A Modern Kaleidoscope -- Ignore unavailable to you. Want to Upgrade?

To: hui zhou who wrote (625)	11/16/2006 3:43:49 PM
From: RealMuLan	Read Replies (1) \| Respond to of 12464

The most important reason for steel cos so hot lately is because China has gone through some very painful restructuring period in their steel industry last year and early this year. They closed/merged a couple of dozens of small/medium size steel plants, cut down the production volume, while the market digested the oversupply. ONLY after that, steel price has recovered and started to go up, and steel industry worldwide starts recovery. Even though the auto sales in China is strong, but the absolute number of sale is still way less comparing the number in US, Japan or Europe.