The steel market is at a critical juncture: With the production bonus in the main producing country, Turkey, cut in half and prices hitting a historic low of 1.55, producers are coming under severe pressure. In many cases, current revenues no longer cover ongoing wage costs.
In the short term, all signs point to a market correction. Declining production due to unprofitable conditions is likely to tighten supply and stabilize prices in the medium term. From an investor’s perspective, there are strong indications of an upcoming rebound—provided demand remains constant.
Buy low now and make a profit by this evening. Thank me later.