IGI Logo

Winter is arriving in Europe, and will impact all

* The EU has achieved ~87% of its gas storage capacity, which is more than its last five-year average. However, with gas supply from Nord Stream-I being down to 20%, the capacity will fall drastically short to meet the winter demand unless drastic consumption cuts are enforced, especially in energy heavy sectors, such as metals smelting.

* The sharp drop in supplies could flare up demand for coal in the next month as gas storage tanks are drained out faster than their ability to refill.

* Slowdown in China continues as mortgage boycotts are coordinating to suspend payments on 340+ projects, up from 318 projects in Jul’22.

* In the first seven months of CY22, 31 provincial governments in China have reported deficits due to lower land sales – their chief reason of revenue plunge – that constrained their efforts to increase spending and provide a stimulus.

* Back in the domestic market, HRC prices inched up slightly as Korean offers receded post-fire at POSCO’s Pohang facility after being struck by typhoon Hinnamnor. However, the mills are coming back online fast.

* Domestic long products have started sliding in the Indian market after reduction in thermal coal, iron ore prices that had been pivotal in supporting secondary prices in a weak demand scenario.

To Read Complete Report & Disclaimer Click Here

For More Motilal Oswal Securities Ltd Disclaimer http://www.motilaloswal.com/MOSLdisclaimer/disclaimer.html SEBI Registration number is INH000000412

Above views are of the author and not of the website kindly read disclaimer