Shanghai rebar dips from 6-yr high; trade spat escalates
China’s Shanghai rebar pulled back on Wednesday after reaching a more than six-year peak in the previous session, as traders worried high prices may not be supported by physical demand, just as a trade row with Washington heats up.
Benchmark construction rebar steel prices on the Shanghai Futures Exchange closed 0.1 percent lower at 4,236 yuan ($621.52) a tonne.
Rebar hit a high on Tuesday of 4,266 yuan a tonne, the highest since April 2012, on short-covering. Open interest, or the number of positions held by investors, fell to 2.2 million lots by market close, the lowest since late March. One lot equals 10 tonnes.
“Summer remains the off-peak season for steel demand. Downstream users are tending to be cautious when purchasing steel products with prices reaching a fresh record,” said analysts from Sinosteel Futures in a note.
