Re-bar futures in China which moved up sharply on news of stimulus package announcement by Chinese government has seemed to lose shine. Most traded Shanghai re-bar futures corrected around 1% yesterday and around 0.3% on Wednesday.
Many experts see that rebound in spot iron ore prices are speculative and buying is primarily done by traders not by manufacturers.
“Sudden jump in spot prices were unexpected.Government plans to speed up infra projects will take time.More over Chinese largest steel producer Bao Steel also kept its steel prices unchanged.” said Mr Mark, an analyst based in Australia.
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