The ferrous complex was hot again yesterday but was cooled overnight by a full-court press coming from China to pop the bubble:
China is not happy and the NDRC has shown its hand:
“The rise in commodity prices has both pros and cons on China. On the one hand, it is conducive to improving the profitability of upstream raw material companies and reducing debt risks. On the other hand, it will also increase the operating costs of mid- and downstream manufacturing and affect the efficiency of the industry.” Jin Xiandong said, “With the continuous release of the guiding effect of price signals on the production and circulation of raw materials, commodity prices will gradually return to the fundamentals of supply and demand. The year-on-year increase in PPI is expected to show a trend of’low at both ends and high in the middle’, and the year-on-year increase in the second half will decline. .”
