International Steel Mills
May 22, 2016
SMU Source: Chinese Government Allowing Markets to Run Their Course
Written by John Packard
The debate about China and what to do about Chinese over-capacity rages in both Asia and the United States. We received the following note from one of our main Asian trading sources who gave us the Asian point of view about the markets in Asia, dumping suits, market economy and the shutting down of excess capacity:
“Have been silent last few months as market in total chaos and frankly speaking, no one having any idea when the waters would calm. Fortunately, we now know that a big correction is coming in June. We have seen prices plummet over the past few weeks, and then slightly rebound, but that was only due to domestic traders taking advantage of this round of decreases at the bottom. The next big adjustment will be in June, next month.
