A step-up in China steel production benefits BHP and Rio Tinto shareholders, but steelmakers like BlueScope are being hit.
Iron prices rose almost 20 per cent since the start of September to around $US120 a tonne, reaching six-month highs, before softening on Monday.Ben Cleary, a portfolio manager at Tribeca Investment Partners, said he expects iron ore prices to remain at similar levels, or increase slightly over the next few months. “I can see prices continuing to hold if not increase into the year-end,” Mr Cleary said. “I’m in the more positive camp”.
But the surge in Chinese production is hurting BlueScope, Australia’s largest steel maker. The company’s chief executive, Mark Vassella, told analysts on Thursday that margins were under pressure. But it would be a “major structural positive” once China started curbing production, he said.“We’re in a cyclical industry. We understand that,” Mr Vassella said. “Of course the near term is important and spreads are terrible ...
The dispute over imports comes as the latest analysis by BMI, a division of Fitch Solutions, concluded the outlook for steel was positive because there is an “anticipation of a turnaround in the property sector, with some form of stimulus from the mainland Chinese government”.
United Kingdom Latest News, United Kingdom Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
China coast guard deploys ‘floating barrier’ to cut off disputed South China Sea shoalPhilippines says it ‘strongly condemns’ move at Scarborough Shoal which prevents its fishing boats from gaining access
Read more »
China will be the ‘only net winner’ in Ukraine-Russia conflictFormer British commander Richard Kemp says China will be the “only net winner” in the Ukraine-Russia conflict. Mr Kemp says China is the “key player in all of this”. “If China wasn’t behind Russia and supporting Russia and buying Russian oil and providing Russia with a huge amount of technical capability that can have dual use … If China hadn’t given that support Russia would be unable to prosecute the war as it is,” Mr Kemp said. “Whatever happens in this conflict – the net winner in this all is China. Mr Kemp said if Russia were to be “severely weakened” by the war, then they would be “heavily dependent on China”. “If the West prevails in some way – Ukraine prevails in some way – then again Russia will be dependent also on China. “Either way China is going to be the only net winner in this whole conflict.”
Read more »
Philippines condemns China for installing floating barrier in South China SeaThe Philippines has accused China's coast guard of installing a 'floating barrier' in a disputed area of the South China Sea. The floating barrier was discovered by Philippine vessels during a routine maritime patrol on Friday. Manila’s coast guard strongly condemns China’s barrier arguing it prevents fishermen from working in the area. China has claimed 90 per cent of the South China Sea overlapping the exclusive economic zones of several countries. In 2012, Beijing seized the Scarborough Shoal forcing fishermen from the Philippines to travel further for smaller catches.
Read more »
‘No better experience’: Michael Voss reflects on brave loss after unlikely, incredible surge into a prelim‘No better experience’: Coach shattered but proud as Blues hint at trade strategy
Read more »
Surge in illegal migration sees thousands flood into US border townsThousands of migrants are risking their lives in a bid to get into the United States amid a recent surge in illegal migration. Men, women and children are taking their chances for a new life by clambering aboard the top of freight trains in a bid to reach the United States. Large numbers of migrants continue to overwhelm officials as they pour into Texas border towns. Some migrants are waiting for days next to train tracks in a bid to take their opportunity. The Biden administration recently announced temporary protective status to half-a-million Venezuelans already in the US.
Read more »
Pay rises surge, close in on inflationAverage pay rises in new collective agreements have soared to a high of 4.7 per cent, putting pressure on wage forecasts.
Read more »