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20-11-2013, 05:12 PM
China eliminating steel capacity to boost fundamentals
http://www.hellenicshippingnews.com/News...4503580ee6
Impt paragraph:
The Chinese State Council in mid October instructed local governments to stop approving new production facilities, suspend the construction of unauthorized projects and order the closure of inefficient capacity in the steel industry.
The government’s goal is to eliminate more than 80 million tonnes per annum in steel production capacity. We estimate, using World Steel Association data that represents about 11% of 2012 domestic production.
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After shipping, now the consolidation to close off the weaker mills, but market forces play a part in the consolidation of shipping companies with yards having different capabilities, although there are different mills, mini-mills, etc, I doubt how different their products can be, and how demand side can lead to consolidation
http://www.hellenicshippingnews.com/News...4503580ee6
Impt paragraph:
The Chinese State Council in mid October instructed local governments to stop approving new production facilities, suspend the construction of unauthorized projects and order the closure of inefficient capacity in the steel industry.
The government’s goal is to eliminate more than 80 million tonnes per annum in steel production capacity. We estimate, using World Steel Association data that represents about 11% of 2012 domestic production.
---------------------------
After shipping, now the consolidation to close off the weaker mills, but market forces play a part in the consolidation of shipping companies with yards having different capabilities, although there are different mills, mini-mills, etc, I doubt how different their products can be, and how demand side can lead to consolidation
life goes in cycles, predictable yet uncontrollable; just like the markets, but markets give you a second chance