Steel price stands on the slippery ground as bears cheer grim concerns surrounding the largest metal user China during early Thursday in Europe. Also keeping the steel bears hopeful is the lack of significant data/events that allowed the traders to consolidate the metal’s recent gains after holding it tight for multiple days.
That said, Steel Rebar futures on the Shanghai Futures Exchange (SFE) fell 2.1% whereas the hot-rolled coil slumped 2.6%. Further, stainless steel loses around 3.4% to revisit the monthly low.
A forced stop in steel manufacturing, amid a heat wave in China, joins the pre-established emission-linked limited to reduce the profit motive of the steel manufacturers, which in turn dashed optimism surrounding the metal. Further, rising steel scrap prices and supply crunch could also be added to the list of catalysts negatively affecting metal prices.
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