What Warren Buffet's favourite Steel Company Is Saying About The World Economy

Chart

Steel makes the world go around since it is related to property activity, infrastructure, and commodities demand such as for coal and iron ore.

When it comes to steel, South Korea’s Posco (PKX) is known as one of the sharpest and largest players globally. Even Warren Buffett owns a stake in the company, and it’s a major holding.

They just reported earnings today, whereby profit soared and they hiked global demand forecasts. They don’t expect a double dip from any part of the world and delivered good news for global commodities.

Utilization has improved substantially since Jan 2010, thus excess slack in the system is going away

Prices have eased back recently, but are still higher than January

Both the US and Japan are coming back as drivers for the market

American steel demand growth will actually be the highest this year, as China's massive demand grows more slowly

Autos are leading the demand rebound

Production growth is starting to outstrip demand growth though

But we've just hiked our demand forecasts for the world

Korea is booming, here we expect healthy double-digit consumption growth

We are NOT worried about a global double dip, we're expanding production massively this year

Confident in the world economy

NOW WATCH: Money & Markets videos

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.