Monday News – 10/30/17

Sounds like the shit is really hitting the fan for Kobe steel over their quality falsification. The thing that’s interesting to me is that Kobe has the integrity to admit guilt and deal with the issue. Makes you wonder how much cheap steel illegally imported from you know where actually meets its standards? Kobe’s stock is down ~ 30%.

FT has an(other) article about global over-capacity that touches on the status of capacity cuts in China. Germany is hosting a meeting in Berlin in November to discuss global overcapacity (I didn’t get invited).

Ore is allegedly piling up in China due to a record import month and capacity cuts. Futures prices of ore in China are down as a result. There is some concern that new capacity in the Middle East and Asia will be dumped onto the global market and offset any capacity cuts made in China.

The Steel and Engineering Industries Federation of South Africa is concerned about US investigation into wire rod from Italy, the Republic of Korea, South Africa, Spain, Turkey, Ukraine and/or the United Kingdom. Link.

 

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