Prices for steel and iron ore have retreated 15-20% over the past 10 days. The pullback is part of a general sell-off being reported across most industrial commodities. At least two catalysts can be flagged: 1. China’s deployment of growth-containment policies; 2. perceived US inflation risk (). It’s a big move, but the growth outlook’s actually intact: China’s simply reining in robust activity + the US Fed thinks that inflation there’s manageable. It’s still a shock to Steel World, of course. Thousands of mills across China just saw their margins get crunched. What cost-cutting strategies do they typically employ? We’ll list them here…
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