Steel price rebounds on covid updates, comments from Fitch on China

Steel price rebound from nearly eight-day low on cautious optimism surrounding China. Also favoring the metal buyers could be the absence of Japan and the UK which allows the quote to brace for this week’s key monetary policy meetings. Furthermore, the People’s Bank of China’s (PBOC) latest action also helps the industrial metal prices to remain firmer.

That said, prices of the most active steel rebar contract on the Shanghai Futures Exchange (SFE) prints nearly 0.50% intraday gains around 3,711 offshore Chinese yuan by the press time of Monday’s Asian session.

That said, the Chinese central bank lowers the 14-day reverse repo rate by 10 basis points (bps) to 2.15%. “With no reverse repos maturing on Monday, China central bank injects 12 billion yuan on the day,” per Reuters.