We attended AMM’s 31st Steel Success Strategies
event in New York City last week. Presenters at the event were
in agreement that global steel prices are poised to fall in the
third quarter, and we concur with these forecasts. A downturn
in global steel prices will have negative implication for
ferro-alloy prices, which is also in line with our forecasts.
Another forecast was presented in the opening session of the
event indicating that the upcoming decline in global steel
prices will prompt Chinese steelmakers to cut production by
100Mt this year. If this in fact occurred, a Chinese production
cut of this magnitude would have severe negative implications
for ferro-alloys consumption. We estimate a...