Steel price remains pressured around the one-month high flashed earlier in the day as buyers battle with the risk-off mood heading into Tuesday’s European session. That said, China’s recent steps to restrict metal production join the previously halted manufacturing due to the lower commodity prices to keep the metal buyers hopeful despite the economic slowdown fears.
While portraying the steel market’s mood, the most active rebar futures on the Shanghai Futures Exchange (SFE) seesaws around 4,041 yuan per metric tonne ($596.00), down more than 1.0% intraday. That said, prices of stainless steel drop near 0.2% daily and hot-rolled coils slump 1.3% at the latest.
“China's state planning agency, the National Development and Reform Council (NDRC) and industry group China Iron & Steel Association (CISA) met last week mandating further crude steel production cuts for the second half of 2022, according to Navigate Commodities,” said Reuters. The news also mentioned that China aims to cut annual steel production for a second straight year to curb emissions. The first-half output was down 6.5% from the same period last year.
US employment data falls short of expectations, aluminium ingot continues destocking trend this week
