Today’s Stainless Espresso is about the battle between the new green superpowers, China and Europe. Both of which are currently trying to take the lead on the world stage on this hot topic. In addition, analysts and ore producers have very different ideas about where iron ore is headed in 2021. And in China, steel prices continue to point upwards.
New battle? China and Europe in competition for…
A new race, a battle, perhaps even a cold war has broken out for green supremacy on Mother Earth. Europe and China are trying to outdo each other in efforts to save the climate. One is relying on rules and penalties. The others are relying on their implementation strength. Will there be a laughing third in the end? Hopefully it will be our earth.
Is the market underestimating the iron ore boom?
Analyst models expect the sky-high iron ore price could plunge 30 percent in the next 10 weeks. But mining giants have a different view of Chinese demand. That’s when Financial Review writes in an interesting article.
Iron ore price rises again
The iron ore price jumped more than 4 percent overnight to $189.61 amid rising demand and ongoing concerns about supply from Brazil.
Prices per ton of iron ore predicted to reach US$200
Strong steel margins could pave the way for iron ore prices to reach $US200 per ton. At least that’s what commodity investors are saying as Australian and Brazilian producers struggle to keep up with demand from China.
But what could cause a wild fall in the iron ore price before the end of the year is harder to see. The view within Rio and BHP is that conditions in China remain strong.
Chinese steel price sentiment
Chinese steel prices continue to point upward. Export prices for Chinese cold-rolled and hot-dip galvanized coil continued to rise last week after mills continued to price possible export rebate cuts into their offers. Confirmation of possible export rebate cuts from the Chinese government is still pending.
In addition, good market knowledge is now more in demand than ever in Asia. Not every supplier offers just like that anymore. It is good to know the market in order to avoid unnecessary work and to be able to reliably source material.
Source: gerber-steel.com
Read also:
- Stainless Espresso: The three really important questions in stainless steel purchasing
- Stainless Espresso: Booming US Investments, Iron Ore Shortages, and Logistic Challenges
- Stainless Espresso: Further Chinese province cuts steel capacity in 2021
We at the Gerber Group have been trading in stainless steel worldwide for over 20 years. We are your experts when it comes to purchasing, import, logistics and services. Information is a vital part of this. Because only then can you and we make the right decisions. Do you have any questions? Contact us now.
Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.
