Wednesday, February 20, 2008

Inflation Gets Hot

As we've occasionally mentioned, the Fed's totally irresponsible program to throw USDs at anything, anyone, anytime, will have consequences.

And they are not pretty, folks.

From the iron and steel front:

The iron mining industry, dominated by three big players (and perhaps soon to be two) has the less concentrated steel industry by the short hairs. The tope three iron companies (BHP Billiton, Rio Tinto, and CVRD) produce over 70% of all the iron ore in the world. And with demand higher than ever in China and India, steel companies are scrambling to assure a steady supply.

Three steelmakers (Japan's Nippon steel, South Korea's Posco, and Germany's ThyssenKrupp) signed a deal with CVRD to buy steel at prices 65% higher than last year.


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