Applebaum Research Publishes Report - ''Reverse Protectionism - Resource Hoarding...

Applebaum Research Publishes Report - ''Reverse Protectionism - Resource Hoarding Will Drive Commodity Inflation in US''

CHICAGO--(Business Wire)--
A new report on the inflationary aspect of raw material hoarding
and the potential impact on international steel prices was released
today by Steel Market Intelligence, an independent Chicago-based steel
equity research consultancy founded by veteran steel industry analyst
Michelle Applebaum.

In the report, "Reverse Protectionism - Resource Hoarding Will
Drive Further Commodity Inflation in US," the SMI analysts point out
that an increasing number of global players - particularly emerging
market countries and China - are beginning to put in place a variety
of methods to restrain exports of increasingly scarce resources. These
restraints come in the form of export taxes as well as price controls
and are, in large part, attempts to rein in dramatic inflation in
commodity markets."

Ms. Applebaum writes, "We believe that this reverse protectionism
- 'resource hoarding' - will likely cause a second wave of resource
cost hikes, particularly for ferrous materials. Most global
steelmakers and their customers are worrying about the surge in steel
and other ferrous resource pricing, and we are already seeing a
half-dozen players restraining exports. We believe that this will
likely result in a 'domino' effect as nations respond to others'
controls. The United States, as the world's largest importer of steel,
will see the impact in a material way."

There are clearly other commodities where this is happening as
well. "Even in the U.S., the CFTC is investigating the impact of hedge
fund activity on soaring agriculture prices. In our view, the tectonic
forces driving food prices to all-time highs go far beyond any
potential market manipulation. We believe that the 'behavior impact'
would be a drop in the ocean of a sea-change-cum-tsunami in global
commodity demand/prices wrought by macroeconomic forces far too strong
to contain," she states.

About Michelle Applebaum Research and Steel Market Intelligence:

Michelle Applebaum Research (MAR) is a Chicago-based equity
research consulting firm founded by Michelle Applebaum, a 25-year
equity research veteran, former Managing Director at Salomon Brothers
and a top-rated all-star steel analyst. The company provides equity
research and consulting expertise in the area of steel and steel
equities to institutional investors and the industry. MAR offers the
broadest and deepest array of industry analyses in the steel market.
In addition to publishing regular reports on the industry, with
special attention to trends in pricing as well as analysis of earnings
for the top companies in the steel industry, the firm provides
personalized service to its clients in the form of management
meetings, equity research reports, conference calls and plant tours,
channel-checking, e-mailed analysis of news trends and events, and
other equity research consulting services. For further information on
the firm, please visit www.michelleapplebaum.com.

Michelle Applebaum Research
Michelle Applebaum at michelle@michelleapplebaum.com
847-433-8517

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