Mr Dan DiMicco CEO of Nucor has recently expressed concerns over Severstal, US Steel and ArcelorMittal as they restart blast furnaces in the US which will add approximately 8 million short tons of capacity to the market.

Mr DiMicco stated that “We have serious concerns that capacity being brought back will get ahead of the demand in the marketplace because the economy isn’t really growing, we are not creating jobs. We are not seeing a lot of commercial construction, nonresidential construction, so it’s a concern. And it should be a concern for everybody. And anybody that says it’s not an issue is kidding themselves or trying to kid you.”

He added that “The result of all this, if it happens will be the drop in steel prices which would put pressure on earnings of steel companies.”

(Sourced from commoditysurge.blogspot.com)