This morning in metals, a major player in domestic steel announced when its full-year earnings call will drop, China looks to be giving used cars some love, and Australia’s government appears a bit bearish on iron ore in the next couple years.
Iron Ore Price Forecast for 2018-2019
Australia’s Department of Industry, Innovation and Science noted in recent commodities report that it expects iron ore prices to drop 20% in 2018 over this past year’s level, and continue that trend into 2019, according to Reuters.
A demand slowdown in China is much to blame, according to the department’s resource and energy analyst David Thurtell, as quoted by the news agency.
China Pivots to Used Cars
Speaking of demand slowdowns, China’s consumers may also be to blame for current — and future — automotive metals demand in Asia (and globally).
The Wall Street Journal reports that used car sales are up 20% because “drivers have figured out nobody on the street would know the difference,” according to the paper (paywall).
Meanwhile, new car sales in China have come to a crawl lately, rising “just 1.9% in the first 11 months of 2017, down sharply from 2016 and below the projected 2.7% growth globally.” Ford Motor Co. actually experienced falling sales in China last year. Ruh-roh.
Steel Dynamics Earnings Report to Be Held…
…on Monday, Jan. 22, according to today’s press release, during which one of the largest domestic steel producers and metals recyclers in the U.S. will disclose both Q4 and 2017 full-year results.
Have a good week!