IKN

Alan launches into Nirvana’s Lithium at a local Karaoke bar

President Twobreakfasts was on Peru radio today. His message was “Businesses have no material reason to lay off workers or reduce investments” and similar demagogic guff and nonsense about “the fear factor”.

Nice timing, as Peru’s biggest steelmaker ‘Aceros Arequipa’ today announced it was suspending production “for maintenance purposes”, but customers shouldn’t worry because they had enough stock to continue to meet demand. (UPDATE: here’s Reuters English language on the story). Or in other words the 40% drop in demand for steel products (especially re-bar used in construction) means the market is now way oversupplied. Note that October stats showed a 14% increase YoY in construction activity in Peru…..go on, take a wild guess about next year’s figures…

Acero Arequipa’s maintenance program has suddenly been brought forward from 2010, but don’t worry. All is well. I mean, just one month ago Alan himself said that Peru was totally protected from any economic crisis. Isn’t the word of your President good enough these days?