Baltic Dry Index Falls 5.1% To 2018
It just keeps going lower….if it continues for a just a couple days it will look as a rerun of a BDI performance as recession started. And we all know what happened than… Chart 1. Baltic Dry Index
Archive for the ‘China’ Category
Chinese Steel Mills To Default On Quarterly Iron Ore Contracts
From Metal Bulletin: Quarterly, spot or swap — which iron ore contract to choose? Tom Albanese’s admission that Rio Tinto may abandon quarterly iron ore pricing, should the majority of steel mills default to the spot market, could benefit the emerging market for over-the-counter iron ore swaps. Macquarie Research believes third quarter contract prices will be […]
China Manufacturing PMI’s For July Turned Lower
The official China PMI fell from 53.9 to 52.1; The HSBC/Markit PMI fell from 52.7 to 50.4. From the China National Bureau of Statistics press release: Economic growth is moderating, a rebound in exports is weakening, and slower domestic demand is leading to a build-upof finished-goods inventories. Industrial production is entering a “light season” and […]
China Scaling Back Steel Capacity Additions
Bloomberg story: Baosteel Scales Back Expansion Target by 38% as China Seeks Capacity Curbs. China, the biggest steelmaking nation, has pulled back from encouraging mills to get as large as global leader ArcelorMittal as it sought to shutter old plants, curb pollution and power demand. Chinese steelmakers are likely to cut output in the third […]
Dry Bulk Weekly – June 26, 2010
Baltic dry index fell 7.2% last week; The hardest hit, again, were Capesizes with 13.3% loss; Supramaxes and Handysizes lost 4.9% and 5.2%; Panamaxes gained 2.2% . It looks the baltic dry index is bottoming. The action was in the capesize sector, so Chinese iron ore demand is the game as a consequence of reduced steel margins . Panamax […]
Friday Reading
I already posted links on stories covering same themes, but since I believe they are important, I will do it again. FT Alphaville: The other liquidity strain — in China. FT.com Blogs / Money Supply: ECB and the €442bn question.
Chinese Yuan Flexible?
Everybody looking only on the China central bank announcement on yuan flexibility. My take, it will prove to be a fake and even contrarian indicator. Media all over the story. Exchange rate didn’t move, non-deliverable futures did, one year pricing a big 2.8%. Yeah, a 2.8% move makes a difference. Bloomberg story on the aspects of the announcement: China’s Hu […]
Dry Bulk Weekly – June 14, 2010
Baltic dry index fell 14.5% last week; The hardest hit were Capesizes with 16.3% loss and Panamaxes with 13.3% loss; Supramaxes and Handysizes lost 12.1% and 6.5%. Platou Markets: Chinese iron ore imports fell to 51.9 mt in May from 55.3 mt in April. After being up 11.7% for the first four months of the year, […]
China To Introduce Property Tax?
Intriguing article by Financial Times: Property tax offers path to Chinese reforms. To sum up. Chinese government is thinking on introducing a property tax to rein on real-estate speculation. China will start to introduce some form of annual tax on residential property in the coming months. If that does happen – and it is still […]
China Fixed Asset Investments Rose 25.9% In May
China fixed asset investments rose 25.9% in May; the consensus was at 25.7%, April reading was 26.1%. Real-estate accounted for 46.2% of fixed asset investments. Scary. Chart 1. China Fixed Assets Investment
China Monetary Expansion Continues In May
All of China monetary aggregates rose in May: M0 was up 15.3%; M1 was up 29.9%; M2 was up 21.0%. New loan issuance was also strong (up 21.5% YoY). If they don’t tighten fast, they will miss the opportunity…and the bubble bursts in an ugly way. Chart 1. China Monetary Aggregates Chart 2. China New Loans
China Industrial Production Up 16.5% In May
Industrial production growth in China fell to 16.5% in May from 17.8% in April. The consensus was at 17.0%. Inventory adjustment has ran its course; export demand could be weaker in the second half of the year; both setting path to moderation in industrial production. Chart 1. China Industrial Production
China Inflation Edges Up In May
CPI was up 3.1% vs. 3.0% consensus and 2.8% reading in April. PPI was up 7.1% vs. 6.8% consensus and same April reading. The prices are rising despite lower crude oil and commodity prices. The mail driver was rise in food prices. PPI / CPI gap widening putting pressure on corporate margins. Chart 1. Producer & Consumer Price […]
Chinese Trade Balance Surprises To the Upside
China trade balance was reported at USD 19.5 billion vs. USD 8.2 billion consensus and USD 1.7 billion in April. Export and import growth was running at 48.5 and 48.3 percent; Exports beat the consensus by 15% margin. Good numbers, but I suspect that going further into the year we will deterioration in trade balance as global […]
China NDRC Property Index Growth Topping Out
Housing and commercial real-estate prices in China rose 12.4% in May compared with record reading of 12.8% in April and 12% consensus. Chart 1. China NDRC Property Price Index – House Price YoY