Steel and Iron Ore Deflation to Continue

Nikko AM

Nikko AM

Steel and Iron Ore Deflation to Continue. The steel industry and its underlying iron ore industry are witnessing excess production and deflationary forces that are similar to the global energy markets. Industrial rationalisations are likely in the coming quarters, involving important credit events in several countries, but the situation should weaken before it improves, in our view. The upside risk is that China, fearing the political effects of economic and financial retrenchment more than its zeal for reform, aggressively increases fiscal stimulus and thus perhaps fixed asset investment. Without this, the situation will likely remain quite challenging for the steel and iron ore markets even beyond this year. Read the full article: (VIEW LINK)


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Nikko Asset Management is one of Asia’s largest asset managers, providing high-conviction, active fund management across a range of Equity, Fixed Income, Multi-Asset and Alternative strategies. In April 2021, Yarra Capital Management acquired...

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