World’s Largest Steelmaker Reports Huge Loss, Suspends Dividend, Blames China

It’s no secret that Beijing has an excess capacity problem.
Indeed, the idea that a yearslong industrial buildup intended to support i) the expansion of the smokestack economy, ii) a real estate boom, and iii) robust worldwide demand ultimately served to create a supply glut in China is one of the key narratives when it comes to analyzing the global macro picture.
That, combined with ZIRP’s uncanny ability to keep uneconomic producers in business, has served to drive down commodity prices the world over, imperiling many an emerging market and driving a bevy of drillers, diggers, and pumpers to the brink of insolvency.
As we noted late last month, if you want to get a read on just how acute the situation truly is, look no further than China’s “ghost cities”…

This post was published at Zero Hedge on 11/06/2015.