Eyes on China stock markets ... and steel exports
While worried attention is being paid to the falls on Chinese stock markets as authorities clamp down on education and technology firms, spare a thought for steel (and iron ore ... and AUD in turn).
Yesterday China flagged levies to reduce steel exports;
That move, it comes, could also be indicative of efforts to reduce pollution (from the making of steel, i.e. emissions). A number of Chinese provinces have ordered steel mills to reduce output amid rising air pollution.
A reduction in steel exports and, potentially, output could weigh on iron ore demand. The rock is Australia's largest export to China and a reduction in exports would be a negative input for the AUD.