Steel futures in China fell this week to their lowest level in a month. The Dalian Commodity Exchange, which features stainless steel letters , also cut iron ore futures after as a private survey pointed to weakness in the manufacturing sector, fueling concerns about the economic outlook for the end-users of the two products.
Rebar futures for May delivery traded the busiest, though on the Shanghai Futures Exchange they fell 1.1 percent to CNY 3399 a tonne and are now just within reach of the CNY 3380 record low hit on February 10. On the Dalian Commodity Exchange, the most active iron ore contracts in May fell 0.8 percent to CNY 856 a tonne.
China's factory activity in February has contracted for the second straight month, according to a survey by HSBC /Markit, which showed a Purchasing Managers Index (PMI) of 48.3, hitting a seven-month low. In addition, Beijing's tightening of lending to sectors is plagued by overcapacity, which receives bank loans on tighter terms.
Weak steel prices could once again spoil the appetite of traders and Chinese steelmakers. “This is a very worrying situation indeed,” said Helen Lau, senior analyst at UOB Hong Kong. activity".
Steel futures fell in China after disappointing PMI
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Azovpromstal® 21 February 2014 г. 10:14 |
