Maris Research

China Macro & Metals: tighter credit conditions will weigh on metals markets

Share on facebook
Share on facebook
Share on twitter
Share on linkedin

Sentiment in China’s metals markets was buoyant in July and August on easy credit conditions and expectations of further stimulus flowing to infrastructure. But September saw a distinct change of tone as cash flows tightened, demand waned and metals prices came under pressure, leaving the market hoping for better after China’s Golden Week holiday. Paul Bartholomew discusses what could happen in coming months.

Money’s too tight to mention

Beijing unsurprisingly opened the monetary sluice gates to support the economy as China emerged from the lockdown in late March. This had two notable effects on the steel and metals sector: It meant traders were not obliged to hurriedly destock inventories that had built up to a huge extent when there was no downstream consumption; and it induced a sense of “things can only get better” among market participants.

“The government will keep stimulating infrastructure”, was an oft-heard comment. China’s steel market was so strong that it became a net importer of steel for the first time in a decade over June-August. In fact, sentiment was as bullish as this correspondent can remember in 12 years of looking at this market.

But things changed markedly in early September, as the impact of

... continue reading 3rd party author's post at source website

order-1586392_1280

Can't Get Enough Freebies? Subscribe to our Newsletter!

We will send you free research and analysis summarized at the end of each month.

Leave a Comment

notes-150587_1280

More Articles.

rjmaris

People’s Bank Of China Draft Law Provides A Legal Basis For Digital Currency Electronic Payments (DC/EP) And Bans All Stablecoins Backed By Renminbi Reserves

https://thumbor.forbes.com/thumbor/fit-in/0x0/filters:format(jpg)/https://specials-images.forbesimg.com/imageserve/5f936be0ffaf49ab482d6c95/0x0.jpg Share to Facebook Share to Twitter Share to Linkedin DC/EP is the Central Bank Digital Currency (CBDC) about to be issued by the People’s Bank of China (PBoC). The pilot has made “positive progress”. PBoC’s deputy governor Fan Yi Fei said that during the DC/EP pilot 3.13 million transactions were processed, totaling 1.1 billion

Read More »
S&P Global

EU carbon border measure should cover power, heavy industry: EP

Highlights EU Parliament’s environment committee urges 2023 start Panel wants to start with electricity, metals, chemicals CBAM should cover ‘all imports’ eventually: committee London — A proposed Carbon Border Adjustment Mechanism should be imposed from 2023 to cover imports of electricity and energy intensive products including metals and chemicals into the EU, the EU Parliament’s

Read More »

Get content like this sent directly to your inbox!

Follow OnceBurned

Share on facebook
Share on twitter
Share on linkedin
Scroll to Top