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Grim outlook for steel

US Steel Corp has reported that it sees market conditions as “extremely challenging” as it booked a net loss of US$75 million for the March quarter this year, swinging from net earnings of $52 million in the comparable year-ago quarter. The company's result included a loss of $65 million on the shutdown of coke production facilities.

Investec said it saw no end in sight for challenging conditions in the steel industry globally given the huge ramp up in steel production that has occurred in China during the last two decades.