China iron ore futures fell nearly 6 percent and steel prices fell to their lowest level in nearly five months on Monday, as concerns over weaker steel demand triggered a sell-off and coking coal and ore raw materials also fell sharply.
Steel traders are not restocking on concerns that demand for the world's best producers and consumers may remain weak after the seasonally mild winter season and that the Chinese economy will cool further amid the ongoing trade war with the United States.
Rebar inventories at Chinese traders fell to 3.08 million tonnes in mid-November, the lowest level this year, according to data released by SteelHome.
The fall in inventories shows traders are not rebuilding steel, a Shanghai-based trader said.
“Traders are trying to sell all their shares or not buy new shares because demand is getting weaker,” experts explain.
Steel demand is generally slow in the winter as cold weather stalls construction projects. It is worrying among many that consumption is not recovering much from China's economy, under pressure from uncertain consumer spending and property sales, and Chinese exports to the United States are expected to decline soon as higher US tariffs begin to take their toll.
Iron ore and steel prices fell in China
|
Azovpromstal® 27 November 2018 г. 13:04 |
