This morning in metals news, China’s steel sector continues to churn out more and more steel, copper prices soared to a nine-month high, and the oil price surged on falling U.S. stockpiles.
China Steel Production
Despite a program of winter production curbs, 2018 proved to be a record year for Chinese steel production.
In the early months of 2019, that production shows no signs of abating (much to the chagrin of producers in other markets decrying the state of global overcapacity).
China’s first-quarter steel production hit 231 million tons, up 10% year over year and marking the largest Q1 output on record, Bloomberg reported.
Copper Hits 9-Month High
The copper price continues to ride a hot streak, hitting a nine-month peak Wednesday, Reuters reported.
Powering the rise was stronger-than-expected growth in the Chinese economy, according to the report, which grew 6.4% in Q1.
Oil Prices Rise to 2019 Peak
Speaking of price gains, the oil price has also shown upward momentum.
Brent crude reached $72/barrel on Wednesday, Reuters reported, partially driven by a drop in U.S. crude stocks.
Meanwhile, the Energy Information Administration (EIA) released its Summer Fuels Outlook today, which forecasts U.S. gasoline prices will be lower this coming summer compared with summer 2018.
“Because gasoline and diesel taxes and distribution costs are generally stable across the United States, changes in U.S. retail gasoline and diesel prices are generally driven by changes in crude oil prices,” the EIA report explained. “EIA forecasts the Brent crude oil price to average $67 per barrel (b) this summer, the equivalent of $1.60/gal, compared with an average of $75/b, or $1.78/gal, last summer.”