Can China 'steel' the risk spotlight from Europe?
China is at a point where they must build a substantial consumer class to make up for softening in external demand. Because while we see steel capacity shuttered in Europe as they enter recession, China also wrestles with overcapacity across many sectors that have been artificially buoyed by government investment initiatives.
And now that the residential real estate bubble is deflating - intentionally or unintentionally - there will be a headwind pressing hard against the demand for steel, among other things ...
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