This article is 3 years old. Images might not display.
China's massive steel sector is being roiled by an energy supply crunch, a downturn in the property market and tighter environmental controls, impacting the short-term outlook for steelmaking ingredients iron ore and coking coal.
"We believe the impact will be negative in the case of iron ore, copper, nickel and, to a lesser extent, zinc, as China is a large net importer of these commodities," Jefferies analyst Christopher LaFemina said in a note this week.
"We are also concerned about power shortages leading to weaker global demand for commodities as power constraints are a risk to global growth."
China is closing for Golden Week celebrations tomorrow.
Elsewhere, the US dollar strengthened and gold eased to US$1,727 an ounce on the spot market, as a deadline looms for a decision on the US government's debt ceiling.
Gold major Newmont lost 1.58% in New York.
Finally, St Barbara (ASX: SBM) led gains by Australian gold miners yesterday, up 6.69%, as a weaker Aussie dollar saw the local gold price back above A$2,400/oz.
