Steel price remains firmer even as China’s holiday, covid policy probe bulls

Steel buyers keep reins during early Monday in Europe, despite a lackluster start to the week, as fears of supply crunch join cautious optimism surrounding the global economic rebound.

That said, steel rebar prices on the Shanghai Futures Exchange (SFE), as well as the most active steel contract on the London Metal Exchange (LME), both print over 2.0% intraday gains by the press time.

In doing so, the metals cheer the broad weakness of the US dollar, as well as hopes that the Chinese government will announce more stimulus to defend the metal industry, as well as the world’s second-largest economy to slip into the recession. Also keeping the metal prices firmer are the recent output restrictions, due to the covid and the emission-linked stipulations.