Steel Rebar Futures Slumps To Seven Months Low

COMMODITIES(B-TRAMS): Steel rebar futures fell below the seven-month high of CNY 4,252 reached on February 23 due to concerns about lower demand and regulatory pressure to lower prices.

The price of a tonne of steel rebar fell to CNY 4,200. According to the Chinese National Development and Reform Commission (NDRC) it has plans to keep an eye on price rises caused by speculative activity and take action against sellers who share false product information to boost bids.

Also Read : Price Of Base Metals Drop As China Sets Modest Growth Target

During the National People’s Congress session, the government announced a growth target of 5% for this year, dampening expectations of a more ambitious plan but still paving the way for additional infrastructure and construction stimulus.

Tangshan, a major hub for steel production, was forced to extend its production halt due to heavy pollution, indicating a lack of supply.

Steel mills were forced to bid at higher levels as a result of adverse weather in top iron ore producers Australia and Brazil, which limited shipments, driving up prices.