Steel Rebar futures bottomed below CNY 5,100 per tonne, easing from a nearly seven-month peak of around CNY 5,200 as investors unwound some long positions on persistent concerns about weak demand in top consumer China. The world’s second-largest economy reported earlier this month that factory activity contracted for a second straight month to its lowest level since February 2020 amid recent COVID outbreaks in the country. Putting a floor under prices was recurring government pledges more stimulus to support the economy. President Xi Jinping said that China would adopt a package of policies to help pandemic-hit industries, stepping up infrastructure construction and back healthy property market development. The commodity is down more than 1% over the week, putting it on track for the first weekly decline in three.
Steel Rebar is mostly traded on the Shanghai Futures Exchange and London Metal Exchange. The standard future contract is 10 tons. Steel is one of the world’s most important materials used in construction, cars and all sorts of machines and appliances. By far the biggest producer of crude steel is China, followed by European Union, Japan, United States, India, Russia and South Korea. The steel prices displayed in Trading Economics are based on over-the-counter (OTC) and contract for difference (CFD) financial instruments. Our steel prices are intended to provide you with a reference only, rather than as a basis for making trading decisions.