BHP Billliton has revised its prediction of “peak steel” in China and an inner-OPEC oil price fight has broken out.
BHP Changes Peak Steel Forecast
BHP Billiton last month revised downwards its forecast of “peak steel” production in China, the world’s largest producer of the stuff. Reuters’ Andy Home writes that It will happen, BHP said, some time in the mid-2020s and the peak will be between 935 and 985 million metric tons, or 960 million in the middle of that range.
Rio Tinto, by contrast, is sticking with its call that the peak will come around 2030 and will be around 1 billion mt.
Kuwait, Iran Undercutting Saudi Oil Price
Kuwait and Iran have cut their crude oil prices to Asia to multi-year lows against top exporter Saudi Arabia as the battle for market share among producers pits members of the Organization of the Petroleum Exporting Countries against each other.
Kuwait, one of the lowest-cost producers, cut its October price to Asia by 60 cents compared with the previous month, undercutting a reduction for a similar Saudi grade. This pulled Kuwaiti oil to its biggest discount to Saudi crude in over a decade, at 65 cents a barrel.