Steel price lures buyers’ attention while taking rounds to the monthly high, flashed earlier in Asia. That said, the recent shift in the market’s risk appetite seems to favor the upside momentum heading into Wednesday’s European session.
With this in mind, the construction steel rebar on the Shanghai Futures Exchange (SFE) rose 1.7% around 4,130 yuan per metric tonne ($615) while the hot-rolled coil climbed 1.8% and stainless steel gained 0.2%, per Reuters.
The US-China tussles over Taiwan have been challenging the risk appetite but the recently firmer prints of China’s Caixin Services PMI for July appeared to have favored the steel buyers of late. The private services gauge from the dragon nation rose to 55.5 versus 48 expected and 54.5 prior. While portraying the mood, S&P 500 Futures rise 0.25% intraday while the US 10-year Treasury yields drop three basis points (bps) to 2.71% at the latest.
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