Tag Archives: Reuters

China’s economic wackamole


China’s efforts at controlling its spiralling debt problem are being undermined by its own provinces.  As provinces issue more and more bonds, the market for the financial instrument is now awash with offers, forcing rates higher, according to a Reuters report today. Heavily indebted local governments seeking to refinance expensive debt have issued more than 600 Continue Reading

Capacity cuts – from where?

Andy home, a commentator with Reuters, recently wrote an excellent article looking at the announcement from Alcoa that Baie-Comeau would lose its two Soderberg potlines, amid a general review of 468,000t of capacity.   Alcoa’s announcement parallels that of Rusal, which is taking out 300,000t of capacity. In it, he posed the question, Alcoa may Continue Reading

Who to believe?

Or is it whom? This afternoon, within an hour of each other, two aluminium reports landed on my desk. One was from Goldman Sachs, in which they foresaw a 3-month price of US$2200 or more, and recommended a long position.   Improved demand in the next few months, combined with the inability for smelters to Continue Reading

China’s March aluminium production

Further to our posts here and here, China’s National Bureau of Statistics yesterday published the production numbers for March. According to NBS, March saw 1.57 million tonnes of primary metal produced, which makes for a daily run rate of 50,580 tonnes.   That’s a drop of 6% from February. We have often said in here Continue Reading

Don’t believe everything you read

Much has been made of the reductions in aluminium output caused by the drive to reduce energy intensity.    Many (mostly foreign-based) analysts have taken the announcements literally, leading them to predict that China will become a much larger importer than it already is. We at AZ China have been speaking to many of the local Continue Reading

China Q1 GDP 6.1%, early signs of improvement

Acknowledgements to Reuters for this story.    For China’s four economic levers, exports are the one which continue to weigh heavily on GDP growth.  Government spending and investment are both strong, though perhaps not for the right reasons.   The fourth lever, consumer spending, is not directly addressed here.   But with inflation much lower and with the Continue Reading