Steel price regains upside momentum, after Friday’s pullback to a one-week low, as concerns surrounding short-term supply deterioration join nearby demand increase. However, fears of the Fed’s aggression and economic slowdown join anxiety ahead of Wednesday’s US inflation data to probe the metal buyers.
That said, the most active contract of steel rebar on the Shanghai Futures Exchange (SFE) picks up bids to 4,125 yuan heading into Monday’s European session.
“Demand picked up in mid-July, with buyers stocking up small volumes before the August summer holidays, but this activity has since reduced with mills closing for the low season, Fastmarkets heard,” said Reuters.
Elsewhere, Turkey re-enters global scrap markets after a brief absence, which in turn helps the demand matrix and helps the metal prices. Additionally, a drop in China’s steel inventory and output figures during July offers extra strength to the steel price.
US employment data falls short of expectations, aluminium ingot continues destocking trend this week
