Final Thoughts
September 26, 2013
Final Thoughts
Written by John Packard
Our last newsletter was interesting enough that I fielded quite a number of phone calls and emails (I take them all and respond to them all). The main point of discussion was regarding the IHS Global Insight article from the presentation given by their steel analyst, John Anton. The essential premise of the presentation being the Chinese steel mills will cut production in the coming months easing the worldwide glut of steel and providing a floor on world prices. In the process North American steel prices are forecast to rise (IHS Global Insight forecast) going into 2014. If excess capacity in China was not reduced their forecast was buyers needed to be concerned about the risk of supply disruptions due to failures of existing mills in Europe or potentially North America.
John Anton’s forecast looks like this:
