08-18-2021, 11:26 AM
(This post was last modified: 08-18-2021, 11:30 AM by ken-do-nim.)
Actually, I made my initial purchase of SCHD over a month ago; I just thought it worth reporting in this thread.
RIO ... well, it's following the price of iron ore ... down. And looking at the Iron Ore price chart, it has a lot of down to go.
Relevant article: https://www.mining.com/iron-ore-price-do...t-decline/
"In September 2020, President Xi Jinping formally announced that China will aim to achieve a peak in carbon emissions before 2030, followed by carbon neutrality before 2060. As part of the decarbonization efforts, the Chinese government at the start of the year announced its intention to start reducing steel production in 2021.
However, China’s crude steel output in the first half grew nearly 12% compared with a year earlier.
“We think it is reasonable to expect second-half steel production growth in China will slow down meaningfully from the first half,” JPMorgan analysts said in a note.
JPMorgan expects Chinese demand to recover strongly in the fourth quarter, leading to a strong rebound in both steel prices and margins.
“After record-strong steel production in 2021 H1, we are starting to see China’s steel output decline. Margins have been falling, especially for steel producers supplying the construction industry, and we are getting more clarity of how the government’s announced production cuts will be rolled out and affect various provinces and steel mills in the second half of the year, said CRU’s steel analyst Richard Lu in a note.
******
China is industrializing like mad, and it needs steel. The problem with steel is that its production releases carbon into the atmosphere. But they aren't simply going to stop industrializing, so I really don't know what's going to happen. Hopefully they come up with some way to capture the carbon produced in making the steel, and store it rather than release it to the atmosphere.
Anyway, while there's hope, I'm not holding this down into the drain. Definitely worried on this one.
RIO ... well, it's following the price of iron ore ... down. And looking at the Iron Ore price chart, it has a lot of down to go.
Relevant article: https://www.mining.com/iron-ore-price-do...t-decline/
"In September 2020, President Xi Jinping formally announced that China will aim to achieve a peak in carbon emissions before 2030, followed by carbon neutrality before 2060. As part of the decarbonization efforts, the Chinese government at the start of the year announced its intention to start reducing steel production in 2021.
However, China’s crude steel output in the first half grew nearly 12% compared with a year earlier.
“We think it is reasonable to expect second-half steel production growth in China will slow down meaningfully from the first half,” JPMorgan analysts said in a note.
JPMorgan expects Chinese demand to recover strongly in the fourth quarter, leading to a strong rebound in both steel prices and margins.
“After record-strong steel production in 2021 H1, we are starting to see China’s steel output decline. Margins have been falling, especially for steel producers supplying the construction industry, and we are getting more clarity of how the government’s announced production cuts will be rolled out and affect various provinces and steel mills in the second half of the year, said CRU’s steel analyst Richard Lu in a note.
******
China is industrializing like mad, and it needs steel. The problem with steel is that its production releases carbon into the atmosphere. But they aren't simply going to stop industrializing, so I really don't know what's going to happen. Hopefully they come up with some way to capture the carbon produced in making the steel, and store it rather than release it to the atmosphere.
Anyway, while there's hope, I'm not holding this down into the drain. Definitely worried on this one.