China's Steel Surge Prompts Warnings of Boom-Bust Cycle

The video discusses the significant increase in steel rebar prices driven by demand in China. Analysts, including Fitch Ratings, suggest this rise may not be sustainable as mills are expected to reactivate idle capacity, potentially increasing supply and affecting prices. The video also highlights the boom-bust cycle in steel, similar to the Chinese equity market, and examines the surging Chinese industrial output of steel, which hasn't yet pressured prices. Additionally, it explores steel industry margins, which have reached their highest since 2009, prompting mills to increase capacity.

What does the term 'boom bust cycle' refer to in the context of the steel market?

What trends are observed in Chinese industrial output of steel?