China is leading the metals markets, analysts said, eager to recover from the coronavirus pandemic, as trade tensions with Australia and the US could eventually drive up costs and curb growth.
As spot prices for iron ore close to $ 100 per tonne CFR in China this week, the shipping market has received support largely from a rebound in Chinese demand for the coronavirus, Colin Hamilton, head of commodities research at BMO Capital Markets, said in S&P Global Platts interview on Friday.
The decline in the availability of scrap metal in the domestic market previously contributed to higher pig iron prices in the first quarter, as well as global iron ore supply restrictions tightening the market, Hamilton said in an interview.
Markets are increasingly seeing the impact of the lockdown measures, he said, and the duration is not yet clear.
“We saw the impact on China as early as possible, and when we get out of the lockdown in China and the many restrictions there, the sentiment will actually be very positive,”
“The recovery in metals demand, fueled by strong policies and strong investment in fixed assets, was the strongest we have seen in recent years, and very surprising, while the rest of the world is experiencing a very weak demand environment today. "
Base metal prices have rebounded strongly on the back of China's imports over the past two months and a forward policy.
The supply of platinum and other precious metals has declined, Hamilton said, and demand has been supported by monetary policy in China.
The World Steel Association said Friday that pig iron prices in China rose 1.4% year-on-year in the first four months of the year to more than 271 million tonnes, while steel production rose 1.1 percent to 319 million tonnes.
Pig iron production declined over the same period in the markets of Europe, North and South America, Japan, India and South Korea.
Since these markets did not operate in furnaces, Hamilton estimates that China currently accounts for about 80% of the world's iron ore trade on a maritime scale, about 10 points more than the usual ratio.
Companies in markets such as Europe and Japan, mainly buying out contracts, have reduced their purchases of iron ore as steel production declined due to weak consumer demand caused by the blockages.
Chinese duties
With China placing more emphasis on trade relations with Australia after it called for clarifying the origins of the coronavirus, imposing tariffs on barley and banning certain Australian beef products, the focus has resumed on imports of marine coking coal into China.
Abc
Subscribe to news
Metallurgy news
- Today
10:57 EU steel industry faces supply and demand challenges - 12 April 2024
09:52 EU steel demand to recover in 2025 - Worldsteel - 05 April 2024
12:40 Liberty's European division is headquartered in Vienna - 01 April 2024
12:51 The number of electric vehicles in Kazakhstan has increased ninefold over the year 12:37 Liberty Czestochowa is preparing to resume production - 27 March 2024
11:38 Ferrexpo faced restrictions on the corporate rights of Ukrainian subsidiaries - 24 March 2024
12:16 Kazakhstan opened a national pavilion at a mining conference in Toronto 11:53 Russian coal imports to China plummet due to import taxes
Publications
27.04 Moving a refrigerator according to all the rules 27.04 Household dehumidifiers in the Osushiteli online store 27.04 High-quality steel reinforcement at an affordable price from the company SAVVATS 25.04 Where to buy a power bank wholesale in Ukraine 23.04 Finoko Company: Global Reporting System