The Rising Influence of Rising Affluence

[DewDiligence]

CLF—An analyst at BB&T Capital markets doesn’t believe the 730M-ton forecast for 2012 steel production in China that CLF issued with its 2012 guidance (#msg-72282856):

http://www.reuters.com/article/2012/02/28/cliffs-china-idUSL2E8DS6D020120228

Two weeks ago, Cliffs' Chief Executive Officer, Joseph Carrabba, said he believed China will increase its steel production by about 7 percent this year to 730 million tons. But analyst Mark Levin, of BB&T Capital Markets, said on Tuesday that Chinese monthly steel production was down 0.2 percent from December to January and was off 13 percent year over year. This equates to an annualized steel production rate of 625 million tons, well below last year's average rate of 695.5 million tons, Levin wrote in a research note.

Judging by CLF’s share price this week, some investors evidently agree with Levin.