This is one of several similar “announcements” this week. I suspect they are as much for uninformed stockholders as anything else.
Basically, everyone is saying “profits are down, demand is down, the market is oversupplied, we cut back on production, by this time next year everything will be back to “normal” (whatever normal is) and we’ll be able to raise prices and margins again”
Yada yada yada no real content.
Nippon Steel Corp. , the world’s third-largest maker of the metal, expects to return to normal production levels by March next year after reducing domestic stockpiles, its president said on Tuesday.
Nippon Steel, which churned out 33 million tonnes of crude steel in its last fiscal year, has announced production cuts of 1 million tonnes in the second half — double the cuts that had been planned earlier.
Steel makers worldwide have cut production after ample global supply of the metal pressured prices.