Sunday, August 14, 2022
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Aussie metals processing is about to be destroyed

Alex Turnbull has written a nice piece on what’s coming from China. What matters in this is that China is developing a huge energy price advantage as it dislocates its local coal prices from the global shock delivered by Russian sanctions by buying cheap Russian energies and producing more of its own coal. This leaves it in a competitively advantageous position to export manufactured products, especially those most dependent upon energy input costs.  That is, metals processing and similar.

On the other hand, Albo’s cowards are protecting Aussie war-profiteering in the same commodities impacted by Russian sanctions and exposing local energy-intensive manufacturers to European-level cost inputs.

In short, Australian metals processing is about to be wiped off the face of the earth as it is supplanted by Chinese output. This is already apparent in the new PMI:

Needless to say, as our relationship with the CCP strucuturally deteriorates…

Read more…

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