Network Metals LLC

Today it is being reported that China has become a net importer of steel again, the first time since 2005. Overall imports of steel into China rose 59% to 6.6 million metric tons and exports fell 23%; some experts are attributing this rise to the success of China’s stimulus package, which has dramatically increased demand for steel over the past few months. Information from our sources in China tells us a similar story, as we believe Chinese steel production is rising rapidly (more than 90%) and could approach capacity. The steel production increase in China is a good example of a government stimulus working properly: the Chinese money is not going to help only the largest companies, but the small to mid-size steel producers as well. The same cannot be said of small to mid-size American companies with the American stimulus package.