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On July 26, Australian Prime Minister Barnes stated that he would raise the issue of tariffs with US President Trump. This comes after Washington imposed new tariffs on trading partners, including Australia. The Labor government, led by Barnes, has called the tariffs unreasonable and expressed its desire for their removal. When asked if he would discuss the issue with Trump, Barnes replied, "Of course." "We will raise this issue at all levels of the Australia-US relationship, and in fact, we have already done so."July 26 – According to Politico, as the US-Iran conflict continues, Arab countries suffering retaliatory attacks from Tehran are attempting to unite and find a path to peace. However, long-standing contradictions are hindering this process. In recent weeks, senior officials from the UAE and Saudi Arabia have publicly posed for photos together, demonstrating a thaw in relations; Jordan and six members of the Gulf Cooperation Council (GCC) have also held talks at the US State Department and Capitol Hill; and the GCC has issued several joint statements condemning Irans attacks. However, several Arab diplomats, current and former US officials, and people familiar with the regional situation say that while these countries all want to ensure the Strait of Hormuz remains open, their differing priorities in how to achieve this goal are hindering substantial progress. These differences include a series of conflicting interests, such as which countries possess alternative shipping lanes, which countries have the deepest infrastructure ties with Iran, and which countrys economy will suffer the greatest losses in the current crisis. An Iraqi official stated, "They are working together to visit the U.S. Congress and the State Department to coordinate their messaging. But they are not on the same page." The Gulf Cooperation Council (GCC), comprised of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE, already had numerous internal divisions before the current conflict, and the war with Iran is further amplifying these contradictions. "They have many issues to resolve, and this war has exacerbated the existing divisions in the Gulf region," said David Schenker, former U.S. State Department director for Middle East affairs.July 26 - Queensland, Australia, confirmed a case of highly pathogenic H5N1 avian influenza on July 25. This is the fourth state in the country to confirm a case of H5N1 avian influenza since June.July 26 - Japanese media reported on the 25th that the temperature in Mie Prefecture in central Japan reached 40.2 degrees Celsius that afternoon. This marks the fifth consecutive day that Japan has experienced temperatures above 40 degrees Celsius, setting a new record for the longest such streak since records began in 2010.The Korea Automobile and Mobility Industry Association (KAMA) predicts that domestic car sales in South Korea will increase by 2.7% year-on-year in the second half of the year, reaching 865,000 vehicles, with total sales for the year reaching 1.71 million vehicles.

The price of steel rises somewhat despite contradictory signals from China

Daniel Rogers

Aug 24, 2022 15:14

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The price of steel continues to hover near its one-week high, which was signaled the day before. Notable is the fact that the latest comeback in metal prices is supported by promises for additional stimulus from China and the retreat of the U.S. dollar, despite the fact that recession concerns pose a challenge to bulls.

 

The most active steel rebar contract on the Shanghai Futures Exchange (SFE) jumped 0.50 percent, while the price of hot-rolled coil increased 1.4 percent. Moreover, stainless steel prices increased 0.4% to 15,430 yuan per tonne.

 

China's willingness to combat the effects of the recession with a substantial injection of funds appears to have contributed to the recent optimism among metal purchasers. "Additional measures taken by China to bolster its struggling real estate market provided additional help. Reuters reports that China slashed its benchmark lending rates and mortgage reference rates by a larger margin on Monday in an effort to stimulate its economy, which has been hampered by COVID-19 breakouts and a housing crisis.

 

On the other hand, Reuters reported that the longer-term situation remained uncertain as a recurrence of COVID-19 cases and a worldwide economic recession continued to weigh on steel demand.

 

It should be noted that the US Dollar Index (DXY) retreats from its intraday high as traders await the US Durable Goods Orders for July, which are anticipated to increase by 0.6% versus the prior increase of 2.0%, for fresh impetus. Expectations that Fed Chairman Jerome Powell will repeat his attempt to soothe hawks at Friday's speech at the Kansas City Fed's Jackson Hole conference may have also impacted on the dollar.

 

Aside from this, predictions of a recession in Europe, primarily owing to the energy crisis, and India's desire to become the world's leading steel manufacturer appear to exert downward pressure on the steel price.