Chinese steel prices are breaking down slowly but iron ore went straight up:
If you think this is silly then you’d be right. Goldman has more:
Q2 year-on-year GDP growth surprised markets to the downside, although June activity data beat (low) expectations. Industrial production growth rose modestly in June, against market expectations of further moderation and amid falling export\ growth. Retail sales and the Services Industry Output Index both reported lower year-on-year growth in June, as base effects became more unfavorable. Fixed asset investment growth beat expectations, thanks mainly to stronger infrastructure and manufacturing investment growth on the back of more policy support. Property-related activity growth broadly weakened in June, suggesting the ongoing (modest) housing easing appears insufficient to offset the strong and persistent headwinds. Despite stable nationwide unemployment rates, the youth unemployment rate rose further in June and we expect it to tick higher in July amid the graduation season. In our view, Q2’s meaningful slowdown in sequential GDP growth was driven by the shorter-than-expected reopening impulse, and payback effects from rapid inventory accumulation in Q1. However, some negative factors may fade in Q3 and policymakers have stepped up their easing measures. We slightly revise down our Q3 GDP growth forecast to +5.5% qoq sa annualized from +6.5% previously, with other quarterly sequential growth forecasts unchanged. Accordingly, our 2023 full-year GDP growth forecast remains intact at 5.4%.
