18 October 2023 – With steel scrap hard to come by in China, steelmakers are scrambling for iron ore. Chinese iron ore stocks have now fallen to their lowest level in 7 years despite high imports. Worldsteel expects demand for steel to continue to grow by up to 7.7%. And emerging markets should point to dynamic growth in 2024, according to the International Monetary Fund.
Emerging market equities: dynamic Asia
Deutsche Bank analysts expect manufacturers of consumer durables, telecommunication companies and financial services providers to have increased their margins and profits in the third quarter.
Asian companies clearly ahead in emerging markets
At almost 20 per cent, the expected earnings growth of Asian equity companies for the next twelve months is well above the emerging market average of 15 per cent. Asian companies are also likely to benefit from the region’s comparatively dynamic economic growth in the coming months, which the International Monetary Fund forecasts at 4.8 per cent for 2024.
Worldsteel sees emerging countries ahead in steel demand
The latest Short Term Outlook of the Worldsteel Association sees the emerging markets of Asia in particular continuing to lead the way in steel demand in the coming months and also for 2024, expecting growth of up to 7.7% there, after increased demand for steel was already recorded in many countries in 2023. For Europe, the association expects demand for steel and stainless steel products to increase by more than 5% in 2024.
Iron ore stocks in China at lowest in 7 years
A surprising development for analysts has just emerged in China. Iron ore inventories there have fallen to their lowest level in 7 years due to very robust and significantly higher demand.
Can EU stainless steel producers still meet their scrap needs?
The increased demand for iron ore from China is partly due to an acute shortage of scrap, which seems to have already started to affect other regions, such as Europe. European stainless steel producers in particular are likely to face challenges in still being able to meet their demand of up to 6.5 million tonnes of alloyed steel scrap per year.
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