As Chinese Steel Mills Prosper, Watch For Steel Prices Rise

Are economic signals coming out of China pointing to a rise in steel prices? Chinese steel mills are in a “sweet spot,” a Macquarie commodities research piece noted. The research firm’s latest survey reveals increasing sentiment and, buoyed by higher prices, a willingness to expand. With strong expectations for production ramp-ups, iron ore could get a bid but this won’t necessarily extend to steel pricing. The Macquarie report comes in sharp contrast to a Credit Suisse report last December that claimed nearly 100% of steel production in China was done at a loss. The report also flies in the face of…