Dow Jones reported that according to a report by Deutsche Bank released on Monday global steel consumption will likely shrink by 17% in 2009,

Deutsche Bank"s forecast has revised downward a previous estimate of a 7% fall in steel consumption.

The bank also sees global steel mill operating capacity falling to 65%, compared to 84% in 2008.

The statement said that “As a result we now model "09 shipment declines of 25% in North America and 20% in Latam.”

Deutsche Bank also said inventory levels were still too high and thought investors would have to wait for a restocking cycle.