Benchmark China steel futures fell on Monday, pausing the five-day climb as investors worried about the
demand outlook after Beijing cut its 2012 growth target to 7.5 percent.
The most-traded October rebar contract on the Shanghai Futures
Exchange eased 0.7 percent to close at 4,267 yuan ($680)/MT.
“Demand for steel is really weak and this may be the situation
for most of this year. This year would be a tough year for steel mills,”
said an iron ore trader in Shanghai.
While the steel market was more active this time versus the previous
weeks, “we don't see how demand can be sustained when there's no news of
new projects. Real estate is still slow as well as railway construction,”
he said.
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