This morning in metals news, U.S. and Chinese trade negotiators resumed talks this week, Goldman Sachs is pessimistic about copper supply and smaller Chinese steel mills are shaking off anti-pollution laws in an effort to compete against larger steel firms in the country.
After trade talks fell apart in May despite significant optimism, China and the U.S. are back at the negotiating table this week.
Negotiators are meeting in Shanghai for the latest round of trade talks aimed at ending the escalation of tensions that have boiled over throughout the last year.
White House economic adviser Larry Kudlow downplayed the resumption, telling CNBC that he did not expect any “grand deal” coming out of this week’s Shanghai talks.
Copper Supply Troubles
Goldman Sachs is bearish on the copper supply market ahead, Bloomberg reported.
According to the report, copper treatment charges in China have fallen to their lowest level in seven years, which could engender production cuts.
China’s Small Steel Mills
Smaller steel mills in China are bypassing environmental regulations aimed at stemming pollution in the country, Reuters reported.
According to the China Iron and Steel Association (CISA), smaller steel firms raised production by approximately a quarter through the first five months of the year, compared with 6.2% among CISA’s larger members.