Shanghai steel retreats after rally to 6-year top, but outlook firm
Shanghai rebar futures dropped nearly 1 percent on Thursday as investors paused for breath after a recent rally that pushed the construction steel product to a six-year peak, but expectations of further output curbs in China could keep prices high.
On top of ongoing restrictions at industrial plants in many Chinese cities, Beijing is planning to impose production curbs for a second winter in a row to tackle pollution, which could further tighten steel supply in the world’s top producer.
The most active rebar on the Shanghai Futures Exchange was down 0.9 percent at 4,202 yuan ($616) a tonne by 0215 GMT, having touched 4,278 yuan on Wednesday, its loftiest since April 2012.
