China increased steel production and defies IJmuiden

- China hunts for raw materials again. In silence and in spite of previously defined limit production to the US and EU, the second largest economy in the world conducts its steel and aluminum production precisely.

,, This is a very bad sign for the global steel market, 'ABN Amro economist Casper Burgering says about the extra production. China accounts for half of the global steel output and is itself a major consumer. The metals market has large surpluses for years, with declining prices.

China dumps in accordance with the European Union and the United States inexpensive, often very mediocre steel in their markets at rock bottom prices. The regions have import restrictions on Chinese steel promulgated to protect producers like Tata Steel in IJmuiden (formerly Hoogovens) and ThyssenKrupp.
  
    
     
      
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China appeared this spring susceptible to this threat. On April 26, state news agency Xinhua reported that the 'Steel province' Hebei all metal smelters would have received a ban for extension.

But the question of farmers in Africa and Southeast Asia pulled and May, the steel flow shows increased again. Research firm Mysteel Research indicates the cause of the real estate bubble in Asia and the billion government subsidies, which are high demand at low interest rates.

,, The high imports in China ore and bauxite in reduced demand are above all intended to China's internal market to hold companies to work, 'said ABN Amro economist Casper Burgering.
  
  
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     Photo: THOMSON REUTERS
    
   
   
    
    
   
   
    
     
     
    
   
 

China also has a new generation of larger cargo ships deployed towards mines of Latin America, Australia and Indonesia.

China does not smell like any chances. Iron ore producers such as Vale of Brazil and Rio Tinto and Roy Hill in Australia add this and next year to 110 million tons, counting on sales in China in particular. My Builder Fortescue, the fourth in the world, said Wednesday its production increase in iron ore. It sees a,, new global wave of growth. ',, The demand for minerals increases, 'says CEO Forrest.

The upturn is likely to be temporary, driven by encouraging governments. But the long-term trends in car sales and construction are favorable, according to ABN Amro for aluminum.

Investment bank Citigroup's back early. Iron ore, needed to make steel, is to be expected according to the investment bank, thanks to demand from China 21% price increase. Citigroup also predicts that China never stepping on the brake, driven by internal growth and housing and infrastructure market.,, The Chinese demand may surprise you, 'says Citi. That is contrary to the consensus, after in April was a quarter of the price.

But just as with oil processors, locks many miners production due to high inventories and low demand. Upon closure of some mines can now already a shortage. As with zinc ore. Globally, for 'only' fifteen years reserve.

Uranium is one of the worst performing metal, 18% price drop this year alone. Nuclear power stations reduce their demand. But here goes on production from mines in Kazakhstan, Canada and Australia. The elimination stocks in ports may take a few years, for investors there is then an opportunity to get out of the charges.