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Based on Porters work Annexure 2 details the competitive forces in the industry, but it was adapted to include the economic forces and governmental influences.
COUNTRY: The stable demand in the US steel market combined with the high labour cost creates favourable conditions for foreigners. The continuous increasing production of European and Russian mills in a stagnant world steel market signals serious warning lights.
ECONOMY: The poor market conditions for steel producers are reflected in their deteriorating financial condition, and numerous bankruptcies. Many integrated mills still have unutilised capacity...
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