Tuesday, Aug 16,
Shanghai rebar futures fell half a percent on Tuesday after rising for a fourth straight day amid persistent concerns over sovereign debt, while the healthy outlook for steel demand in China capped losses, with iron ore prices standing firm.
The most active January rebar futures contract on the Shanghai Futures Exchange reached 4,875 yuan ($763) per tonne on Tuesday, hitting the highest level in more than a week, before closing down 0.49 percent.
The China Iron & Steel Association expected steel demand in the world’s top steel producer and consumer to remain robust in the second half of this year, as the country maintains huge investment to boost its industrialization and urbanization.
“It is not easy for the overall market to recover quickly from the European sovereign debt worries, and rebar didn’t fall much as the consumption in second- and third-tier cities remained strong,” said Zhang Chunzi, a broker in Beijing.
Source: Reuters
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