Record production levels, but lower prices. China's steel industry is also still producing near a record, but selling at lower prices. There is surplus production, growing stockpiles and many producers operating at, or near a loss.
The market may be betting that situation is unsustainable. It may be that government stimulus can keep the steel mills producing, even if it is unprofitable to do so, but its still not the best environment to invest in.
The recent stimulus announcements haven't yet arrested the fall in the price of steel, though you wouldn't know it from the rampaging AUD (also not helping the miners profitability).
12 month chart of iron ore (red), coal (orange), SHFE steel rebar (yellow):
what was wrong with the result?, page-12
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Last
$39.58 |
Change
0.770(1.98%) |
Mkt cap ! $200.4B | |||
| Open | High | Low | Value | Volume |
| $39.19 | $39.64 | $39.10 | $102.0M | 2.578M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 143 | $39.58 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $39.59 | 1683 | 13 |
View Market Depth
| Last trade - 11.24am 13/09/2024 (20 minute delay) ? |
| BHP (ASX) Chart |