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Dow Jones Stock Market Today – Materials Up After Suez Canal Blockage — Materials Roundup

Producers of metals and other raw materials rose as a key shipping route was blocked.

Some strategists said the blockage of the Suez Canal could ripple through wholesale prices of many goods and commodities. One brokerage said metals prices are already feeling knock-on effects of China’s ambitious green-economy goals. “China’s decarbonization move is becoming more detailed and starting to affect specific commodities,” said analysts at brokerage Morgan Stanley, in a note to clients.

“We see a manageable near-term drag on growth from reduced commodity output, which could push up [producer prices].”

Among the commodities likely to be most affected are aluminum and steel, said the Morgan Stanley analysts. “With China cutting production while demand remains healthy, this will result in declining exports for steel and aluminum.” Further, China’s pullback from the seaborne steel market could “reverse the deflationary trends that have prevailed” in metals markets for more than a decade.

 Write to Rob Curran at rob.curran@dowjones.com 

(END) Dow Jones Newswires

March 24, 2021 16:43 ET (20:43 GMT)

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Dow Jones Stock Market Today – Materials Up After Suez Canal Blockage — Materials Roundup

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