RBA on steel and iron ore

This morning’s SoMP may have been a dead bore but there was one interesting breakout box about China’s steel market and iron ore demand. It keeps up the pretense of endless Chinese demand (which we can take with a grain of salt) but some of the details are useful. Enjoy.

rba steel

Comments

  1. It didn’t tell us anything we didn’t already know unfortunately. Much ado about nothing.

    Retails sales were supposedly up YoY but I haven’t seen any breakdowns as yet that could elaborate on flat steel product demand for 2013. I’m see reports that consumer spending is slowing due to an awareness of potential employment security problems over the next 12 months.

    Another concern for Chinese consumers is an unstable employment situation. A survey of 2,247 small companies in the Shanghai area conducted jointly by Alibaba Group reported that more than 12% of the respondents cut jobs during the past six months.
    http://www.mla.com.au/Prices-and-markets/Market-news/Consumer-spending-slows-in-China

    China’s going to be hard pushed to maintain current activity levels given external markets are deteriorating at ever increasing rates.