Iron Ore-Shanghai rebar hits record low, weighs on ore |
| Reuters - Aug 20, 2012 |
Chinese steel futures hit a record low on Monday, falling below 3,600 yuan ($570) on festering worries over demand in the world's second-largest economy, with iron ore remaining trapped at a 2-1/2 year trough.
The most-traded rebar for January delivery on the Shanghai Futures Exchange dropped as low as 3,599 yuan per tonne, before closing half a percent lower at 3,607 yuan. Futures on rebar, used in construction, have declined 20 percent from the year's peak.
An unexpected rebound in steel output in top steel-producer China may curb any future gains as it could exacerbate a recent supply glut and high inventories, analysts said.
"Market fundamentals remain poor and rising output in early August further dampened sentiment," said Ding Rui, an analyst at Shanghai Zhongcai Futures.
"I expect a weak rise in steel prices as they have largely fallen below production costs, while I don't see any big improvement in steel demand ahead."
Read Full Article from Reuters
- Posted: 2012-08-20 11:55:15
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