Steel price remains pressured at six-week low on China woes, focus on US employment data

Steel price stays pressured around the lowest levels in six weeks as fears of central bank aggression join China-linked pessimism. That said, pre-NFP trading lull restricts the metal’s immediate moves.

While portraying the mood of steel traders, Rebar prices on the Shanghai Futures Exchange (SFE) fell 1%, while hot-rolled coil shed 0.6%. Stainless steel slipped 0.4%.

A covid-led lockdown in China’s Chengdu city joins downbeat Caixin Manufacturing PMI to portray grim conditions for the world’s second-largest economy and weigh on the sentiment. On the same line could be the escalating geopolitical tension between Beijing and Washington, via Taiwan. Furthermore, Reuters unveiled news suggesting that US President Joe Biden's curbs on chips to China are part of a broader effort.