Rebar Prices Suffer Biggest Single Day Drop This Year Amid Surging Panic

SHANGHAI, May 25 (SMM) - Rebar futures closed down 3.51% at 3,466 yuan/mt yesterday, its biggest single day drop this year. Prices in the spot market generally fell, and panic spread. According to SMM research, the operating rates of blast furnaces averaged 92.57%, which was the same as last week. The daily average output of pig iron in the sample steel mills was 2.24 million mt, which was slightly lower than last week. The slump in rebar futures prices caused panic, with spot prices in some regions down more than 100 yuan/mt. Trades were sluggish. Uncertainty over US interest rate hike and looming US debt crisis will hit commodity market. Coke prices may see the ninth round of cuts. Iron ore prices will fall if pig iron production is cut. Rebar prices may rebound a little due to corrections after being oversold.