How Wuhan Corona Virus Is Making The Steel Industry Sick

As of February 14, 2020, Wuhan and many major cities in China are still quarantined so the vehicles that normally are used daily and consuming oil regularly are not using nearly as much fuel and other petroleum products as they usually would, if they are using any at all. Residents in these cities have been quarantined for three weeks already. China is a leading consumer of oil in the world and their dramatically decreased use of oil as a result of the quarantine has caused an excess of oil in the market.

Atop the abundance of oil and gas in the market, the quarantine has also caused an interruption in the supply chain. China produces and exports many many things, one of which is steel and related supplies. Since many of the areas that produce these products are quarantined, there is a significant shortage in the steel industry. This makes products much more difficult to source and will lead to an increase in price overall in the industry. We can predict this shortage to start driving up prices in the next 4-6 weeks, so keep an eye out for that!

This may sound a bit scary, so here are some memes to lighten the mood!