The Wall Street Journal reports that China’s steel production may see a decline this year for the first time in 31 years. Such an opinion was expressed by Chinese experts. The forecast is based on poor macroeconomic conditions and lower demand for steel. This factor may also affect the import of iron ore and coal need to produce steel.
In Q2 2012, the Chinese economy boosted by 7.6% (y/y). this is the slowest pace of economic growth since the 2008 crisis. The slowdown resulted in higher net export. This year, China is expected to produce 678.68 million tons of steel, which is -0.7% as opposed to 2011, Steelinfo reports.
Forex.
According to , the Chinese Yuan has strengthened a bit against the US Dollar over the last few days. The experts report that the bullish move of USDCNY is completed and the price is forming wave а(С)/С. In order to resume the bearish move, the price will need to break and consolidate below the 6,3593 low. Alternatively, the rally will resume if USDCNY overcomes the top of the MF sloping channel and breaks above the Mf pivot (as shown below):
