In our latest Alert Insight post, we share an alert our system generated last week that would be relevant to anyone watching the #industrials, #materials and #metals industries.
On Thursday January 25, we learned at 7:54 AM EST from ContentEngine that the OECD issued a warning about future growth of worldwide steel capacity, referencing this report: https://lnkd.in/ecVjQRGb
To illustrate, the price of steel rebar dropped by a factor 2.5 between June 2011 and October 2015, and global excess capacity is as high as it was at the beginning of last crisis. While the current price of rebar has dropped by a third since its peak in September 2021, it is still more than twice the level of its 2015 low, and the conditions are ripe for history to repeat itself.
In the context of declining demand from the Chinese construction industry and the generalization of the GigaPress process for car body manufacturing, which uses aluminum instead of steel, this oversupply warning adds to the understanding of the sale of US Steel to Nippon Steel – and serves as an important notice to investors, analysts and others interested in heavy industry.
Read more about Causality Link’s alerts in our new blog post, “A Predictive Edge: Harnessing the Anticipatory Power of Causality Link’s Market Alerts System”: https://lnkd.in/eZ3Gw2wm
Causality Link has brought together causal, neurosymbolic and generative AI to detect market-moving trends – right as they emerge. Contact us today for a custom demo and to learn more about how our tools can enhance your workflows, help you capture alpha and stay informed about the world around you.
