The worry on every steelman's mind is that as the growth in demand for steel slows from its recent hectic rates, the huge increase in Chinese production capacity will be diverted to turning out steel for export.

ECONOMIST: Steel industry

Once the project is completed, Alcoa will see a marked increase in its aluminum production capacity.

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According to the Federal Reserve, there has been a steady increase in industrial production and capacity utilization since the end of last year.

FORBES

As we had mentioned then, the most significant advantage to Cliffs from the acquisition is the increase in its North American iron ore production capacity.

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The steel companies have increased their production capacity overall to compensate the increase in demand for flat rolled steel.

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The U.S. Agriculture Department has projected a 23% increase in farm-grown exports in the 2008 over 2007, and ethanol production capacity increased by 60% to 11 billion gallons, saving the global oil market almost one million barrels of oil per day.

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Wednesday's report follows Solarfun's forecast earlier this month for strong demand in the second half of this year and said it plans to increase its production capacity.

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While international oilfield services firms like Halliburton and Schlumberger have kept operations going in the South American country, PDVSA has proven that its capacity to increase production on its own is quite limited.

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Saudi engineers have been working on several big projects that could boost the nation's output by 1.3 million barrels a day--more than the expected increase in global demand next year--but the secretive nation is "likely to keep its political tool, excess production capacity, close to its chest until it has a new U.S. president to win over, " Edward Morse writes.

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