SHANGHAI, Aug. 29 (SMM) – It is a traditionally peak demand season for rebar in September and October. Will this high demand period materialize this year?
The price for RB 1501 contract lost a key support at 3,000 yuan per tonne, and spot declines also accelerated since mid August, with price in Shanghai market down to 2,900 yuan per tonne, and the price of steel billet even slumped to 2,560 yuan per tonne.
“The sharp price loss did spur bargain hunting, but the shorts continued to dominate the market”, an analyst from Everbrignt Futures told SMM in a recent interview.
“Utilization rates at domestic steel mills are high, and the resultant supply growth will become more pronounced against weak consumption”, he added, saying these are dashing market hopes of the upcoming peak demand period”.
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