Alibaba.com - Chinese steel bubble blows.

[touchring]

Steel prices continued to drop and steel enterprises reduced the EXW price

August 24 MetalBiz--On August 23, the construction steel price continued to drop to 3,700 yuan per ton and the HRC price rebounded to 3,650 yuan per ton in the domestic stock market. Compared with the highest level on August 4 in the domestic steel market, the construction steel price reduced 19% and HRC cut 16%

Zhou Xizeng, chief analyst of Citic Securities said that "the dramatic falling in the current market was apparent and the panic minds were widespread, but from the present off-season of steel market, the actual demand was scare, therefore, although the market continuously reduced the price, the deals were also little".

demand scare -> reduced price -> but deals still little = f*cked?

http://news.alibaba.com/article/deta...rop-steel.html

[Polish_Silver]

Re: Alibaba.com - Chinese steel bubble blows.

Duncan claims that "excess capacity" is one of the biggest dangers of the current "export led growth" system.

Do you see evidence of excess capacity in China's steel manufacturing, or other sectors?

The excess capacity is one of the "deflationary forces" causing lower prices, lower profits, bankruptcy, etc.