Steel, iron prices firm on falling Chinese growth figures
The amounts people are willing to pay for these commodities rise as market players bet on China to provide a stimulus package to grow its economy
17 September 2019 - 16:44
Launceston — Is it time to challenge the conventional wisdom in iron ore and steel markets that poor Chinese economic data is actually good news because it means Beijing will ramp up stimulus spending, thereby boosting demand?
The current thinking of ‘bad data equals good news’ was on display this week, with steel prices rallying after economic news showed a deepening slowdown in China’s factory and consumer sectors. Benchmark Shanghai steel rebar futures gained as much as 2.1% in Monday’s trade to 3,575 yuan ($505.71) a tonne, the highest in six weeks, before ending 1.5% higher at 3,553 yuan...
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