Chinese Rebar hits 5-1/2 month low as Iron Ore sags

Shanghai rebar fell to its lowest level in more than five months on Tuesday, stretching its losses into a third straight session, amid thin Chinese demand that could prompt producers in the world’s biggest steel market to curb output.

The most briskly traded rebar contract for October delivery on the Shanghai Futures Exchange touched a session low of 4,055 yuan ($640) a tonne, last seen on Nov. 30, before closing at 4,090 yuan, down 1.1 percent.

“There’s still too much steel for the current market to absorb. Given this sustained fall in prices, we should expect steel production to be cut down by the end of this month,” another trader in Shanghai said.

via Iron Ore-China steel hits 5-1/2 month low, ore sags | Reuters.

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