Texture from Reuters:
Steel sales in China, however, have softened as growth in the machinery sector slowed, while the offset from infrastructure has not been sufficient, Westpac analysts said.
“The Chinese administration clearly stated at the July Politburo economic meeting that property will not be used to boost growth this time so this significant part of steel demand is unlikely to come to the rescue in 2020,” they said.
At least until it’s panic stations. We’re a goodly shock away from there yet.
To the charts:
Spot firmed as steel fell. That won’t last. Paper was stable overnight. Port Hedland shipped 42mt in August, roughly flat year over year, despite weak Brazil shipments. Given Chinese inventories rose over the period, that gives you some idea that there is no shortage of ore any more.
Whether we rise or fall into year end now hangs on global outcomes.