Rumours Say China Will Release 5 Trillion Yuan Of Special National Bonds, Buoying Rebar Prices, But The Sustainability Of Rise Depends On Upcoming China May Manufacturing PMI

SHANGHAI, May 26 (SMM) - Rebar futures contract rebounded today, but still closed down 1.54% at 3,493 yuan/mt. Spot rebar prices fell at first and then rose. Transactions improved in many regions. Profits of blast furnace steel mills improved after nine rounds of coke price cuts. Electric furnace steel mills increased production slightly as some products were in short supply. End users and traders stocked up as rebar prices rallied after continuous declines. After sharp decline in rebar prices over the past week, electric furnace steel mills may cut output in the future. The cost side has no support to rebar prices. It is rumoured that China will release 5 trillion yuan of special national bonds, boosting market sentiment, but it remains to be seen whether this rumour turns out to be true. China’s May manufacturing PMI will be released on Wednesday. Rebar prices may rebound if the figure is above 50. Otherwise, rebar prices will continue to fall.