Demand in the Chinese steel market is likely to rebound from mid-March as downstream consumers resume production, an SMM survey of 50 construction sites and traders showed.
Ferrous metals futures fell across the board on the morning of Friday March 9. This plunge is mainly due to the anticipation of interest rates increase and sluggish demand, SMM believes.
SMM believes that the 10% import tariff on aluminium signed by US President Donald Trump will have little impact on China’s aluminium market.
China is likely to eliminate its dependency on overseas refined copper and move to develop foreign copper ore supplies by optimising its industry, SMM believes.
China will cut another 30 million mt of steel capacity in 2018 and intensify efforts to liquidate bankruptcies, reorganise so-called ‘zombie firms’, and resettle retrenched workers and debt.
SMM Evening Comments
price review forecast
The purchasing managers’ index (PMI) for China’s copper downstream industries is expected to be 54.61 in March, according to SMM survey.
China plans to build a total of 250,500 mt of new lithium salt capacity in 2018, SMM calculated according to publicly available data.
Selenium prices in China rose during the week ended Friday March 2 amid more active trading and rising import costs.
Operating rates at silicon producers in Yunnan province remained low due to power shortage as it is still sometime away from the wet season, SMM learned.
Copyright © 2018 SMM Inc. All rights reserved.