Texture from Reuters:
Trade tensions between the United States and China, the world’s two largest economies, are a significant source of risk for the global economy, with “real spillover effects” for emerging markets, top IMF officials said on Wednesday. demand in top consumer and producer China is forecast to grow just 1% next year, compared with this year’s projected growth of 7.8%, according to the World Steel Association, which blamed the ongoing trade conflict.
Global steel demand growth will slow to 1.7% in 2020, from a 3.9% growth forecast this year, the Belgium-based group said.
“The negative news flow is certainly dragging iron ore prices lower,” said Argonaut Securities’ metals and mining analyst Helen Lau.
If we get that kind of demand growth I’ll eat my shorts. To the charts:
Spot is all over the place. Paper is weak. Steel is close to cracking. Today’s China data will be fun.