Plunged Chinese futures led the price fall in rebar and in turn raw material values today. Speculations are that the comments from the bank official regarding the de-leveraging monitory policy might have affected the trade for the day.
Purchases were put on hold by some buyer expecting a further price fall; on the other hand the large stock owners reduced the prices fearing weakened market ahead. Moreover it has been observed that the manufactures are using lower grade material due to the increased supply of coke reducing the need for higher grade material.
Billet
Billet traded at 3,250 Yuan (USD 471/MT) including VAT down 60 Yuan (USD 8.70/MT) from a day earlier.
Dalian Commodity Exchange
Iron ore futures contract closed at 605.50 Yuan (USD 88/MT) on Tuesday, down 31.50 Yuan (USD 4.60/MT) from Monday’s closing price.
Shanghai Futures Exchange
Rebar futures contract closed at 3,229 Yuan (USD 468/MT) on Tuesday, down 105 Yuan (USD 15/MT) from Monday’s closing price.
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