Fish, China has dwindled their supply true, but they have not told you the whole truth. China is lucky in that they are a communist country at heart although they are experimenting with capitalism. When they tell everyone that everything is fine, nobody questions them becuase those that question still get shot.
They will burn through stuff to an extent till they find a use for it, but they are also turning down consumption of raw materials. They may be new to the global economics foray but they aren't idiots.
Look for US steel companies to revive production numbers coming toward the end of the year. End users are crushed with inventory and massive write downs in values are underway. Many costs are being slashed by 33% or more in some companies. Suppply lines are very slack right now and spot market prices are where companies are getting their needs unless it's a major quantity. Smaller companies who actively handle their inventory are who you need to look for. Anyone with small inventory values will flourish or at least survive in this turmoil. Our personal company is beating out larger players because they are choking on high cost inventory that they refuse to write down. They are suffering from the same dilusion the banks are, they actually belive they will recoup their money from high price buys and in the case of the banks overpriced mortgages in default. Both sides need to slash 50% or more from their values, pound down a few beers and shots of liquer, cry, and wake up the next day to a brighter future.