Outlook for Steel Makers

Inventories are too high

With the class of the industry, Arcelorittal (NYSE:MT) cutting production and staff on must also expect US Steel (NYSE:X), POSCO (NYSE:PKX) and Ternium (NYSE:TX) to follow suit. The good news is that the inventory build up will also cause a drop in prices. with governments around the world trying to spur economic activity through infrastructure projects, a srop in prices may mean more projects come to fruition.