Steel price renews monthly top on easing covid fears from China

Metal basket remained surprisingly firmer, despite risk-negative headlines from China, as traders seem to brace for Wednesday’s Federal Open Market Committee (FOMC) meeting minutes.

Steel price also follows the trend and refreshes monthly high, as far as steel rebar price on the Shanghai Futures Exchange (SFE), is concerned.  That said, the steel rebar price is around 4,150 yuan per tonne, up nearly 1.0% of late.

The latest run-up in steel price could be linked to the People’s Bank of China’s (PBOC) rate cut. That said, the PBOC cut the one-year medium-term lending facility (MLF) rates by 10 basis points (bps).

On the same line could be the improved coronavirus conditions in China's financial hub Shanghai that led to the reopening of all-format schooling after multiple months of coronavirus-led closures.