RBA’s iron ore meltdown


The geniuses at the RBA have turned their eye to Chinese steel, and, as usual, the outcome is a disaster:

Weakness in the Chinese urban residential construction sector has persisted since 2021, and has significantly reduced the sector’s demand for steel. However, overall demand for steel has remained resilient due to recent growth in infrastructure and manufacturing investment. Investment growth in these sectors looks set to continue in the near term, but there is considerable uncertainty around the long-term outlook for such investment. This uncertainty means the outlook for urban residential investment remains a key risk to the outlook for Chinese steel demand.

Projections to 2050 indicate that demand for urban residential construction in China has likely peaked.

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.