26 July 2024 – Asian commodity markets are looking friendly on Friday, supported by positive developments in the US economy and housing construction there. And China’s renewable energies exceed installed coal capacities for the first time.
In this Stainless Espresso
Asian commodity markets are friendly on Friday
The commodity markets are looking friendly today, Friday, with key commodities posting gains. On the Shanghai Futures Exchange (SHFE), copper rose by around 0.58%, aluminum by around 0.34%, nickel by around 0.86% and tin by 0.40%. The Dalian Commodity Exchange (DCE) also showed positive trends: iron ore rose by more than 2.00% in some contracts, coking coal by 0.54% and coke by 0.31%. These positive developments should boost confidence in the commodity markets ahead of the weekend.
Positive developments in the US economy and housing construction
The US economy is showing impressive progress in several areas. Residential construction and economic growth are reporting encouraging figures that point to continued positive development.
US residential construction on the upswing
The S&P Composite 1500 Homebuilding Index has recorded an impressive performance of almost 16% in euro terms since the beginning of the month. The industry is showing positive signs: in June, 3.9% more building permits were issued than in the previous month. The increase in planned apartment buildings with five or more residential units is particularly strong, rising by around 20 percent. The number of new construction sites also rose by three percent, with apartment buildings leading the expansion with an increase of 22 percent.
US economy: more growth, less inflation
The US economy grew at an annualized rate of 2.8% in the second quarter, exceeding analysts’ expectations. In addition, the increase in the personal consumption expenditure index slowed to 2.6% and the core rate fell from 3.7% to 2.9%. Traders on the futures markets are currently expecting two to three interest rate cuts by the Fed of 0.25 percentage points each by the end of the year. This could further support the positive trend.
Wind and solar overtake coal: renewable energies on the rise in China
China has installed more wind and solar capacity than coal for the first time, consolidating its leading position in the global renewable energy sector. By the end of June 2024, installed wind and solar capacity had reached 1,180 gigawatts, just 20 gigawatts below the target set for 2030, which is expected to be reached this year.
China Electricity Council: Combined capacity of wind and solar rose to 1.18 billion kilowatt
According to the China Electricity Council, the combined capacity of wind and solar rose to 1.18 billion kilowatts, an increase of 37.2 percent year-on-year. This exceeded the coal capacity of 1.17 billion kilowatts for the first time. If the trend continues until the end of 2024, it is expected that China could reach its self-imposed renewable energy targets six years earlier than planned.
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