Chinese steel rebar futures for October delivery at Shanghai Futures Exchange (SHFE) dropped to its lowest by 2.1% to RMB 3,496/ton, a 9 month low on Monday since September 7th last year as China, the world's biggest steel consumer's economic recovery seems delaying.
Steel demand slowed further last week in some areas in China on heavy rains prior to the seasonally weak consumption period that usually begins in June.
Mills are stockpiling their inventories due to weakening demand that may lead to cut output sharply to resolve cash flow problems.
China's excess steel capacity is compressing prices in recent years because the economy is growing at a slower pace.
Source:
http://www.yieh.com/2.2.01.01stainlesssteelnews.aspx?no=64657&division=A4
