Free Trial
JGBS AUCTION

PREVIEW 40-Year JGB Supply Due

CHINA PRESS

Chinese Housing Developers Still Mired In Default Risks

JGBS

Curve Steepens Into 40-Year JGB Supply

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access

ANZ On Iron Ore: Weak Foundations

METALS

ANZ note that “the iron ore market remains on shaky ground. Demand in China still faces headwinds from a real estate downturn and constraints on steel industry emissions. Supply side issues are the only thing stopping prices from falling further.”

  • “Beijing has stepped up fiscal policies to support economic growth, but we see new downside risks. There is a long way to go before the property sector will see any meaningful rebound. Environmental constraints are also likely to reduce China’s crude steel output, so we have lowered our steel production assumptions and now expect a second consecutive year of contraction.”
  • “This is being offset by ongoing supply constraints. Growth remains elusive for Australian exports as miners battle extreme weather and labour issues. Similar issues are plaguing Brazil. When combined with smaller falls in exports from India and Ukraine, the iron ore market remains tight.”
  • “Nevertheless, we expect the market to swing back into a small surplus in 2023. As such, we see limited upside in iron ore prices. We have lowered our end-of-year target to USD115/t and expect prices to trend lower in Q4 and into 2023 as the impact of the stimulus measures peter out and iron ore demand weakens.”
201 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

ANZ note that “the iron ore market remains on shaky ground. Demand in China still faces headwinds from a real estate downturn and constraints on steel industry emissions. Supply side issues are the only thing stopping prices from falling further.”

  • “Beijing has stepped up fiscal policies to support economic growth, but we see new downside risks. There is a long way to go before the property sector will see any meaningful rebound. Environmental constraints are also likely to reduce China’s crude steel output, so we have lowered our steel production assumptions and now expect a second consecutive year of contraction.”
  • “This is being offset by ongoing supply constraints. Growth remains elusive for Australian exports as miners battle extreme weather and labour issues. Similar issues are plaguing Brazil. When combined with smaller falls in exports from India and Ukraine, the iron ore market remains tight.”
  • “Nevertheless, we expect the market to swing back into a small surplus in 2023. As such, we see limited upside in iron ore prices. We have lowered our end-of-year target to USD115/t and expect prices to trend lower in Q4 and into 2023 as the impact of the stimulus measures peter out and iron ore demand weakens.”