Why China's Steel Mills Won't Cut Back Production

Macquarie's commodities analysts have been to China and they've come back ... gloomy.

The bank has previously highlighted the steel industry as a poster child for commodities woes, with particular emphasis on overcapacity in China. In the face of slumping metals prices, the pressure is on miners and producers to cut supply. Unfortunately for global commodities prices, a chunk of the world's metals producers seem reluctant to do so—even in the face of losses.