China’s steel market is not collapsing despite the property downturn. Instead, demand is stabilising at a lower level as manufacturing, exports and new energy sectors gradually replace construction-driven demand. This is not a demand collapse, it’s a structural shift from property to industrial and export-driven demand. What’s Really Happening The sharp drop in construction activity has clearly hurt steel demand: Property-related steel (like rebar) has fallen significantly Construction’s share of demand is shrinking But the broader market tells a different story: Total steel demand is only slightly below past peaks Manufacturing, shipbuilding and energy transition sectors are absorbing demand Exports are acting as a key buffer Instead of a sudden crash, the industry is entering a long plateau . Why This Matters The market had expected a sharp collapse but reality is more gradual: Demand is declining slowly, not falling off a cliff China is shifting from construction-led growth to ...
US markets extended losses as rising oil prices and a sharp sell-off in tech stocks weighed on sentiment, overshadowing dovish signals from the Federal Reserve.
Key Market Moves
- S&P 500 fell 0.4% to 6,343.72
- Nasdaq dropped 0.7% to 20,794.64
- Dow Jones rose 0.1% to 45,216.14
Key takeaway: Tech weakness and oil-driven inflation fears are dragging the broader market lower.
What’s Driving the Sell-Off?
1. Oil Prices Surge Again
- Crude oil jumped over 5% to around US$105
- Driven by ongoing US–Iran–Israel conflict
Higher oil = higher inflation risk = pressure on equities
2. Tech Stocks Lead the Decline
Heavy losses in AI, chip, and data-related names:
- Applied Digital: -13.5%
- AXT Inc: -13%
- Micron Technology: -9.9%
- Arm Holdings: -5%
- Intel: -4.5%
- Super Micro Computer: -4.1%
AI and semiconductor stocks are facing profit-taking and valuation concerns
3. Fed Comments Not Enough to Lift Sentiment
Jerome Powell signaled no immediate rate hikes despite rising energy prices.
However:
Markets remain focused on inflation risks, not policy reassurance
Mixed Performance Among Big Tech
Decliners:
- Tesla: -1.8%
- NVIDIA: -1.4%
- Apple: -0.9%
- Alphabet: -0.3%
Gainers:
- Meta Platforms: +2%
- Amazon: +0.8%
- Microsoft: +0.6%
Big Tech is showing divergence, but overall momentum remains weak
Notable Movers
Winners:
- Alcoa: +8.2% (supply disruption boost)
- Palo Alto Networks: +5%
- Occidental Petroleum: +1.4%
- Exxon Mobil: +0.3%
Losers:
- Optical & AI-linked stocks broadly declined
- Crypto-related equities fell despite crypto gains
Crypto Shows Resilience
- Bitcoin: +0.8%
- Ethereum: +2.4%
- Solana: +2.1%
- XRP: +1.1%
Crypto decoupling slightly from equities in the short term
Final Take
Markets are being pulled in two directions:
- Rising oil prices → inflation fears → equity pressure
- Fed patience → limited support for risk assets
Until energy prices stabilise, tech-heavy indices like the Nasdaq may continue to face downside pressure.
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