Steel Price fades rebound from yearly low on China oversupply fears, risk-off mood

Steel Price fails to extend the previous day’s corrective pullback from a five-month low as supply fears escalate. Also weighing on the metal is the market’s risk-off mood, as well as a firmer US dollar.

That said, the construction steel rebar on the Shanghai Futures Exchange fell 1.3%, while the hot-rolled coil dipped 1.1%. stainless steel rose 0.6%, per Reuters. The industrial metal recovered from the lowest levels since January by posting nearly 3.0% daily gains the previous day.

It’s worth noting that the latest data from the Shanghai Metals Market (SMM) raised oversupply fears by saying that China's stainless steel imports dropped 24% YoY in May, but exports rose 32.91% YoY. “In May 2022, stainless steel imports totaled 229,800 metric tonnes, down 9,176 mt or 3.84% month-on-month and 24.05% year-on-year,” add the SMM per Reuters.