Dawes Points Issue 63: Steel Output Indicating Asian Boom Continuing
In fact, the foundations for the Dawes Points Global Boom seem stronger than ever.
Major equity indices around the world are making new all time highs and those in Asia are breaking out upwards after long periods on consolidation.
World steel output is showing encouraging growth and is indicating the Asian Boom is continuing. Australian stocks and the A$ should soon be reflecting all this.
- Global equity markets breaking through major resistance to new all time highs
- China, India, ASEAN, Africa make up 48% of global GDP and growing
- US housing starts robust and housing sector stocks making 11 year highs
- World Feb 17 steel up 4.1% over Feb 16 (+7.8% annualised for 28 days vs 29 in 2016)
- China Feb 17 steel output 798mtpa up 4.6% YoY (+8.1% annualised)
- Rate of change indicators suggesting further steel production growth in 2017
- Non-OECD now exceeds 70% of global steel consumption
- Indian crude steel output exceeds 100mtpa for first time in Jan 17
- Iron ore price still exceeding US$80/t basis 62% Fe CIF
- All Ords targets above 7500 (+30%) by end 2019
- Gold sector BUY recommendation reinforced
Important stocks are:
- BHP Billiton (ASX:BHP)
- Rio Tinto (ASX:RIO)
- Fortescue Metals (ASX:FMG)
- South32 (ASX:S32)
- Northern Star Resources (ASX:NST)
- Western Areas (ASX:WSA)
- Metals X (ASX:MLX)
- Magnetite Mines (ASX:MGT)
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