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    May 15, 2014

    Electricity Curtailments Impacting Asian Scrap Markets

    Written by Damon Sun

    The finished steel stockists have been buying finished products the last two weeks.   However, the stockists are still keeping very little inventory on a wait and see mode due to the iron ore price collapse (currently abt $102/dmt).   The current finished product orders should keep the production smooth for the next 3 weeks in China.

    Taiwan has been on summer electricity curtailments (no day shift) since May 10th and consequently there is a drop of 30 percent in production.   It is also a main cause why the steel stockists started some buying.   Korea will go on summer electricity curtailments in June.

    Damon Sun

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