Asian Highlights

摘要

The Asian market has evolved rapidly over July. During the first half of the month, prices continued their descent as pessimistic sentiment gripped participants. Then, as news filtered through, that China would launch new measures to ease lending by way of liberalising interest rates, a pick-up ensued. Nevertheless on a month-on-month basis prices were down by around 3-4%. Credit conditions are now expected to thaw, providing end-users with sufficient funds to boost consumption by the fourth quarter, although the revival is likely to be tentative. Product stocks, though lower, are still relatively high. In addition the market improvement has been built on rising exports that cannot be maintained, while business sentiments may be wishful thinking - about the good intentions of the Chinese government. Around the region smaller economies are reserving as best they can their growing markets for their own steelmakers against the barrage of exports mainly from China. Thus, prices are only likely to stabilize next month with the potential for modest gains not transpiring until the end of August/early September.