In this week's Market Movers Asia with Mugunthan Kesavan:
- Japan’s iron, steel exports data to indicate bleak outlook
- Asian carbon prices see volatility on policy moves
- China’s demand to be key driver in Asian thermal coal market
- Typhoon Doksuri to impact China’s rice-growing regions
- Wheat buyers look for alternative supply
This week, the Asian steel market will be looking for signals around China’s steel output, after the country’s largest steelmaker Baowu recently received output cut orders. China is currently facing elevated steel production and sluggish demand due to weak property market prospects.
Japan’s iron and steel exports data for June, due this week, is expected to show a fall in shipments to China on the back of weak demand. Overall exports are likely to dip for the first half of 2023.
In Asia’s carbon market, investors will gauge key policy implications and their impact on prices. Prices for Korean allowance units stabilized from all-time lows after government intervention, while in New Zealand, prices still hover at multi-month highs after favourable climate recommendations were adopted.
The Chinese government's economic stimulus could trigger some industrial demand for seaborne cargoes of thermal coal, although rains in many parts of China may lower coal demand from power plants at the same time.
Rice market participants will be watching for clarity on China's crop conditions as Typhoon Doksuri is likely to impact several leading rice-growing regions.
Meanwhile, wheat importers in Southeast Asia are likely to seek alternative wheat supplies after the collapse of the Black Sea grain deal.
I’m Mugunthan Kesavan, thank you for kicking off your Monday with S&P Global Commodity Insights.