Nov 15, 2010

Overcapacity In Steel Production Is A Serious Problem.

"The overcapacity in steel production in the world is a serious problem that could lead to trade wars among countries and regions, Nouriel Roubini, the famed economist from New York University's Stern School of Business recently said, according to media reports.

This is a serious problem we have seen in a number of sectors, including steel, where there is overcapacity installed in China and other countries, says Roubini. He also stated that it is leading to a situation where either you don't produce, making factories lose money, or, if you produce at capacity, the increased output falls on weak demand and implies a collapsing price."


Related: United States Steel Corporation (NYSE:X), AK Steel Holding Corporation (NYSE:AKS), ArcelorMittal (ADR) (NYSE:MT)