REUTERS/Stringer
- Prices for steel, iron ore and coking coal have tumbled since the start of March.
- While some blame the introduction of tariffs on US steel imports, Macquarie Bank thinks it’s been driven by concern about the outlook for Chinese steel demand.
- It expects recent trends to reverse in the weeks ahead as Chinese construction activity ramps up.
Sentiment towards Chinese steel demand has taken a big hit since the start of March, leading to large and steep declines in commodities such as iron ore and coking coal.
Data showing steel inventories held by Chinese traders spiked by the most since 2013 in early March, coming at a time when inventories are usually being run down as construction activity ramps up as the winter thaw subsides, rattled investor confidence, creating doubts over the outlook for demand.See the rest of the story at Business Insider
NOW WATCH: The surprising reason why NASA hasn’t sent humans to Mars yet
See Also:
- Trump’s steel tariffs are nothing compared with the looming war over intellectual property theft with China
- Trump’s trade war is heating up — here are 11 stocks UBS says to avoid
- 12 rare animals that are teetering on the brink of extinction
