Alloy Steel Inc. (fka AYSI)

[DaveinHackensack]

One scary thought

From the FT ( http://www.ft.com/cms/s/0/a75ade98-dd14-11de-ad60-00144feabdc0.html ) The cost of China’s excess capacity:

The scale of the excess capacity is breathtaking. At the end of 2008, China’s steel capacity was 660m tons against demand of 470m tons. This difference is much the same as the European Union’s total output. Yet, notes the report, “there are currently 58m tonnes of new capacity under construction in China”.

I'd like to think that China is going to use up that capacity with infrastructure and construction developing its poorer Western regions, but if this is just the Chinese government giving its economy a giant dose of hair of the dog, that would be a big problem for AYSI and the whole mining sector.