The metal markets are gearing up for a come back; post COVID-19. China knows exactly what has to be done to get back on track. Not to mention, we will soon have the US government standing behind Cliffs call for National Security by supporting their AK Steel acquisition, which just so happens to have the sole monopoly on electrical grade steel. Plus the ability to contribute to US stainless steel production and fabrication...My guess is that eventually they will be looking for a source of ferrochrome from a very responsible raw materials supplier. One that does not threaten National Security and is close to home....Hint, hint.
http://www.butlereagle.com/article/20200306/NEWS12/200309971
But....That does not preclude Noront's ability to secure other offtake agreements for many of their other precious and base metals, which I can see making their way to China.
https://www.mining.com/china-570-billion-stimulus-raises-hopes-for-copper-iron-ore-price/
.......PRC Macro anticipates spending by Beijing of as much as $570 billion primarily focused on infrastructure. PRC Macro says “in order to declare an economic victory, a 5% growth rate is the absolute minimum that will be acceptable”.....
......The second, just commencing now, is to bolster growth. Infrastructure spending is key, and much of the support (up to 4 trillion RMB) will come from policy banks.
BMO notes the first stage in the China restart is to get factories going again (services would take longer) and is “well progressed,” noting that even in the centre of the outbreak – Wuhan – (China’s Detroit), automakers have been notified to restart operations, albeit with some restrictions.
....China is responsible for some 70% of the world’s seaborne iron ore trade, and half the world’s copper consumption. China last year produced 56% of the world’s steel and with rapid refinery expansion in recent years, the country also produces the majority of the world’s copper and other industrial metals.
....While panic selling of equities in the US and elsewhere have pushed markets into technical bear territory, that is, a decline in excess of 20%, industrial metals and raw material prices have held up relatively well.
