Steel price remain mildly bid around a one-week high, flashed the previous day. It’s worth noting that the hopes of more stimulus from China and the US dollar pullback underpin the latest rebound in the metal prices even as the recession woes challenge the bulls.
With this, the most active steel rebar contract on the Shanghai Futures Exchange (SFE) rise 0.50% while the hot-rolled coil rose 1.4%. Further, stainless steel climbed 0.4% to 15,430 yuan a tonne at the latest.
China’s readiness to battle the recession woes with a heavy injection of funds seems to have favored the latest optimism among the metal buyers. “More measures from China to support its beleaguered property sector lent further support. China on Monday cut benchmark lending rates and lowered the mortgage reference by a bigger margin to boost its economy hurt by COVID-19 outbreaks and a property crisis,” said Reuters.
US employment data falls short of expectations, aluminium ingot continues destocking trend this week
