US ratings agency out with a note on China and steel prices 9 May
- stable Chinese output will exert downward pressure on global steel prices
- Chinese steel exports to remain at around 100mln tonnes
- consumption also likely to remain flat
- China's steel and coal capacity cut targets will be tough to hit
- Chinese coal and steel sectors likely to remain oversupplied in medium term which will limit upside in international prices
Not good news for any one hoping prices might turn around from the recent declines.
Eamonn had this from Goldmans earlier on commodity prices
AUDUSD 0.7357 on session lows after the sharp fall from 0.7400 on weak retail sales but bearish talk on metals won't be helping either.
Expect demand/support at 0.7350 but the pair remains on the back foot with the Budget coming up at 09.30 GMT.
