Steel Prices Extend Downward Trend Amid Sluggish Demand Recovery

Steel prices in China are extending a downward trend this year as demand remains sluggish and government deleveraging efforts add uncertainties to the market outlook.

The main futures contract for rebar — reinforced steel bars — closed at 3,606 yuan ($501.8) a ton Monday, down 2.41% for the day and a near 6.5% drop since the start of the week-long break for the Chinese New Year on Feb.8. Hot-rolled coil futures closed down 1.95% at 3,767 yuan a ton, a 5.5% drop from before the holiday.