Everyone thought a COVID-19 ravaged steel supply market in China took a turn towards recovery. However, many other hurdles now stand in the way, both long & short term. Power cuts and muted demand driven by the construction crisis in China stand in the path of growth. Even worse, the cascading effect has affected the […]
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Construction MMI: China Property Crisis Dominos into Industrial Metal
This month, the Construction MMI (Monthly MetalMiner Index) dropped yet again. However, it declined slightly less than those seen in previous months. Altogether, the index is down 4.60%. Industrial metal, in general, continues to struggle due to China’s COVID lockdowns and supply chain issues. The best way to track industrial metal prices is to sign […]
Aluminum Prices: Is China Turning on the Stimulus Taps?
It is not an idle question. For the last two decades, China’s infrastructure spending has been the engine of demand growth for steel, copper, and aluminum prices. So when the South China Morning Post reported that local governments sold 1.94 trillion yuan (US$289 billion) worth of bonds in June to fund infrastructure spending and boost […]
Rare Earths MMI: US and China Feud Over Rare Earth Prices
Over the past month in, the Rare Earths MMI (Metal Miner Index) slightly dropped by 0.64%.Over the past few decades, the US-China relationship has evolved into more of a rivalry than anything else. This has left the United States eager to decouple from China on several critical issues. One such issue is the supply of […]
Iron Ore Prices Show Gains in China, but Is This a Temporary Rebound?
It’s still touch-and-go for the steel sector in China despite the sprouting of the first shoots of a possible manufacturing recovery. However, last Monday, benchmark iron ore prices in the country gained a surprising 7%. This is the biggest daily rise in two-and-a-half months. Is it a sign that we should be more optimistic, or […]
China Demand is Sagging
The bears are back in the metal markets, and one of their prime motivators is this year’s dismal prospects for China. A note in the FT’s Unhedged today explored the country’s “impossible trilemma” of achieving 5.5% GDP growth, reaching a stable debt-to-GDP ratio, and meeting zero-COVID initiatives. When you combine this with the reality that […]
Steel Production Forecast: China’s Loss is India’s Gain
The global steel story for the last month or so has centered around two main players: Russia and Ukraine. Now, the spotlight has shifted (if momentarily) to China and India. As two of the world’s largest steel exporters, what these countries have to say could greatly impact the global steel production forecast. A Tale of […]
The Aluminum Price Forecast: China is Coming
Don’t worry – this isn’t another “reds-under-the-bed” story. Rather, it’s a look into how Chinese aluminum semis are quickly becoming the market’s main price setting (at least in Europe). With Russia more or less out of the picture and domestic mills booked up for months, China is the only swing producer with capacity to spare. […]
Ban on Australian coal imports has minimal impact on China steel prices
China and Australia appear to have finally moved away from each other. The relationship turned frosty after China imposed an “unofficial ban” on Australian coal imports back in November, 2019. At the time, many speculated that China would suffer more. But steel prices have held steadier as well. The dispute started between sometime in 2019 […]
Rare Earths MMI: China merger forms rare earths giant
The Rare Earths Monthly Metals Index (MMI) rose by 1.7% for this month’s reading. We’re offering timely emails with exclusive analyst commentary and some best practice advice. Sign up here. China consolidates trio of rare earths units As Beijing has sought to control its domestic metals production in the form of state-directed company consolidation, it has […]
