27 September 2024 – The euphoria on China’s stock markets continues due to positive stimulus signals from government circles. Iron ore prices rise by more than 4.5% on Friday. Nickel on the LME on its way to the USD 17,000/MT mark. And Russia is preparing export restrictions for important minerals – proposals are to be presented shortly.
Russia prepares export restrictions for important minerals
The Russian government is preparing a list of minerals and processed products that could be subject to export restrictions, Deputy Prime Minister Alexander Novak announced at Russian Energy Week.
Proposals to be presented shortly
“We are analyzing the global market situation and will present our proposals shortly,” Novak explained. He pointed out that the list contains products that are in high demand worldwide, but emphasized the need for careful consideration in order to avoid negative effects on the domestic industry.
On September 11, President Vladimir Putin had already instructed the government to consider restricting the export of strategic raw materials, including uranium, nickel and titanium, provided this does not harm the Russian economy.
China euphoria drives Asian stocks higher
Chinese stocks had their best week since 2008, helping push Asian shares to 2-1/2-year highs after Beijing launched a major stimulus package to boost the economy, while a sharp fall in oil prices bodes well for global disinflation.
DCE iron ore prices rise by more than 4.5%
Iron ore prices on the Dalian Commodity Exchange (DCE), an important indicator of expected demand in the Chinese steel industry, also rose by more than 4.5% today, up almost 7.5% on the previous week.
Meeting of the Chinese Politburo
In addition to the announcements by the Chinese central bank, President Xi Jinping convened an extraordinary meeting of the 24-member Politburo of the Communist Party yesterday to discuss the existing problems and work out solutions on how to achieve the target of 5% economic growth in 2024.
The meeting concluded with the promise that the Politburo and the party would strive to achieve the country’s economic goals. No concrete measures have been mentioned to date; this should follow in the next few days. However, the specific mention of the problem child – unusual for communication from the party leadership – stood out.
Europe receives news from China positively
The news was also received positively in Europe. Shares in companies with major business in China – for example companies from the luxury goods and clothing sectors as well as raw materials and basic materials manufacturers – also rose significantly.
Nickel prices up on SHFE and LME
Base metals also continued to benefit from the euphoria on the markets today. SHFE nickel rose by 0.5%, while nickel on the LME continued its trend towards USD 17.000/MT in current trading and was already back above USD 16.900/MT in the short term.
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