Shanghai steel prices fall amid trade dispute, growth worries
Shanghai rebar futures pared early gains to close lower amid China’s intensified trade dispute with the United States and worries about slowing growth, although weekly inventory data showed firm demand from downstream sectors.
This week, the U.S.-China trade war escalated as the world’s two largest economies continued their tit-for-tat tariff actions. That stirred market worries about a possible slowdown in economic growth and reduced demand for commodities.
Weekly stocks of steel products in China still dipped 5,800 tonnes to just below 10 million tonnes as of Friday, data from consultancy Mysteel showed, with rebar stocks falling 2.4 percent. Hot-rolled coil stocks, however, rose 2.3 percent.
“Inventory data implies that supply and demand for steel products are generally in balance,” said analysts at Huatai Futures in a note. But analysts also noted that hot-rolled coil demand looked much weaker than rebar.
