CONTRACTORS FINED BY OSHA FOR KANSAS CITY ACCIDENT
Early 2015 was apparently too soon for investors in the metal industry. After putting out dozens of positive articles the market analysts are now saying the outlook is bad. Due to major downturns in the European and Chinese industries as well as a large drop in copper.
Moody’s Investors Service
As one of the most respected investing services in the world their opinion is important for investors. As such investment and steel industry sites around the world are reporting on their downgrade from stable to negative in the industry.
Chinese Demand Downturn
In order to understand this we need to understand the aspects. Recent downturns have hurt the export market for many countries significantly. As such investors are shying away from the markets and many businesses around the world are suffering as well. GDP growth is the main culprit for this downturn as it has slowed in recent years.
Copper Futures Look Bleak
Despite having a significant upswing in recent years the demand for copper is falling slowly. For many producers this was the backbone of their industry. It allowed them to stay afloat even when other sectors looked grim. With this change things got quite a bit bleaker in the metal industry.
European Recession and Deflation
European metal markets have been declining over many years. Many countries have put forth plans to revive them with mixed results. Currently the market is still looking quite poor. However a lack of demand is at the core of all these events. If you work with any of these markets make sure to have a backup plan.