Alloy Steel Inc. (fka AYSI)

[realest]

I have the answer to that! They have ore stockpiled already. I'll post something for you.

this is from our Steel market update from today.......

Some Comments on China

One of my sources very close to the China steel market recently made the following statements to me.

The Chinese government was supposed to have axed the BORON export rebate tax on the 1st of September. This did not happen. When it will happen - or, if it will happen are still open questions. The result is the Chinese mills are offering commodities with two prices - one for HR and other non-flat rolled products with Boron at a slightly lower price than one products without Boron additives.

I asked if the Chinese government would intervene and put in taxes or other de-incentives to prevent the Chinese mills from making so many offers to the U.S. and other markets. The response was with all of the additional steel making capacity coming online in China they will have no choice but to export no matter what the government does.

I also wanted to know what was being discussed in China regarding the VALE iron ore mid-contract price increase. The response was it will be difficult for VALE to get the increase has the iron ore spot market price in China is now "cheap", pig iron prices are dropping and the Chinese ports of full of iron ore.