From Australia's Sydney Morning Herald:
Chinese steel is now cheaper than cabbage
Steel is now cheaper than cabbage in China, as weak demand and over-production continues to undermine the end market for Australian iron ore and coking coal.
Despite a water content of more than 90 per cent, respected commodity price index publisher Platts revealed that cabbages were pricier by the tonne than the most popular type of steel, known as hot rolled coil steel, which is used to make industrial pipes and some vehicles.
In a note on steel prices this week, Platts noted that when measured by the ton, the wholesale price of white round cabbage in Shanghai was about 6 per cent more expensive than a tonne of hot rolled coil.
Economic powerhouse or riding on a bubble? Your call...
Hat tip to Peter at Bayou Renaissance Man
Leave a comment