While worried attention is being paid to the falls on Chinese stock markets as authorities clamp down on education and technology firms, spare a thought for steel (and iron ore ... and AUD in turn).
Yesterday China flagged levies to reduce steel exports;
That move, it comes, could also be indicative of efforts to reduce pollution (from the making of steel, i.e. emissions). A number of Chinese provinces have ordered steel mills to reduce output amid rising air pollution.
A reduction in steel exports and, potentially, output could weigh on iron ore demand. The rock is Australia's largest export to China and a reduction in exports would be a negative input for the AUD.
