The steel industry typically sees some bankruptcies in any real downturn. This looks like a downturn! Somehow the steel industry doesn't seem like it's suddently small enough where companies don't go bankrupt anymore, and the economics of low-cost provider vs. higher-cost provider hasn't changed. Even the best of the steel companies will suffer as world demand drops way down below expectations. There are simply too many houses and cars out there, not to mention commercial buildings. We really don't need much steel, 1.3 bn tons in 2007/2008 could more than halve before the economy runs its course. Steel prices seem irrelevant in that situation, since over-capacity would be very high.
$13.69 (05/19/09)
