Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
The Reserve Bank of Australia has flagged the risk to the nation's iron ore industry from China's ailing property market, labelling it a "significant concern" in its Statement on Monetary Policy released on Friday.
The Bank's warning that weakness in China's residential property sector will weigh on demand for steel and, therefore, demand for Australian iron ore comes as the price of the steel-making raw material fell below USD80 a tonne last week, down from around USD150 a tonne earlier this year. The RBA estimates China's residential property sector accounts for around one-fifth of Chinese steel demand.
The Statement said that despite government efforts to support China's property sector, sales remain at low levels and housing starts remained "depressed" in September, reaching the lowest level in more than a decade. The RBA said China's growth is expected to be "much stronger" than in 2022, but added that Chinese GDP is still expected to remain "well below" its earlier trajectory.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.