If the USA increase steel demand it is good for Australia in several ways.
1, They will be consuming more Recycled scrap meaning they will have less scrap to export to China, meaning Chinas demand for Ore increases.
2, They will be importing more pig Iron, and finished steel from Asia, which increases demand for Australian Iron Ore.
3, They will be importing more Iron ore from Canada and Brazil, which means less Ore will be available from those regions to send to Asia, which again increases demand for Australian Iron Ore.
you also mentioned in a prior post that only 6% of Chinese steel is exported, this is not actually true. 6% of their steel production is exported as finished steel such as coil and rods etc but that doesn’t include all the steel exports in products such as nails, screws, washing machines, cars, furniture, fridges, ships, canned goods etc etc etc
FMG Price at posting:
$14.27 Sentiment: Buy Disclosure: Held
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