Rebar/Iron Ore Ratio Fluctuated at a Low Level in February

SHANGHAI, Mar 2 (SMM) - In January, the price stabilisation policy tightened again, which weighed on the iron ore prices. Meanwhile, the transactions of rebar dropped during the Chinese New Year holiday, and the prices fluctuated within a narrow range. As a result, the rebar/iron ore ratio fell after rising in January. In the follow-up stage, the fundamentals of iron ore in February were still strong. But the futures prices were under the pressure of policy. As for rebar, since the prosperity of the real estate industry is still in the bottom range, the recovery of the construction industry in February was significantly slower than that of the same period in previous years, and thus rebar futures are unlikely to rise. It is expected that the rebar/iron ore ratio will fluctuate at a low level in February with slight downside potential.