Network Metals LLC

Mini-mill producer Gerdau Ameristeel (NYSE:GNA) said late yesterday that it is suspending production at its Sayreville, NJ steel mill and closing its rolling mill in neighboring Perth Amboy. The company cited the obvious reduced demand as a result of the economic downturn, and may also close facilities in Sand Springs and Tampa. From our point of view, this could perhaps be the first sign of a rationalization to reduce overcapacity in the US steel industry. We’ve already seen large cutbacks in aluminum and copper fabrication facilities, so these moves in the steel industry seem a bit overdue.