Sarissa Resources Inc (SRSR)

[downsideup]

"Current market issues" in niobium...

World steel production continues growth:
http://www.steelonthenet.com/production.html

There is an expected market "burble" in China, tied to the interest rate squeeze now being applied there to slow inflation, and contain the property price bubble that has been growing:

http://seekingalpha.com/article/307037-chinese-steel-production-and-house-prices-down-sliding-toward-a-slump-part-two?source=yahoo

What's most worth noting in there being a slow down in steel production in China now, tied to slowing in domestic demand... is where the "slow down" occurs in relative terms to the market, and how that controlled reduction in the accelerated pace of growth in China is being used in the steel sector.

The context, first, is that Chinese steel producers have been "operating at full capacity since February". So, not exactly a case of steel producers "struggling" to find a market. This isn't 2008.

Then, how is the pull back in pace going to be used ?

"Chinese steel mills, facing lower orders and increasing inventories, are bringing forward blast furnace and equipment overhauls"...

In other words... the niobium market impacts you can expect to see from Chinese steel producers having backed off from operating at full capacity... is that they'll be increasing niobium demand more in the future, as a function of accelerating plant capacity upgrades...

http://agmetalminer.com/2011/11/10/chinese-steel-production-falling-fast-what-does-it-portend-part-one/