Chinese steel futures fell for the fifth straight session and hit one month lows with buyers saying they were still waiting for convincing signs of improvement in an overstocked market.
Rebar prices on the Shanghai Futures Exchange spent much of Tuesday trading slightly up, but ended the day at CNY 3,045 per tonne, down 0.2%. They touched a one month low of 3,039 and are down 3.5% since hitting end May highs a week ago.
A trader based in the steel producing city of Tangshan in northern China’s Hebei province said that many steel mills in Tangshan were still feeling the pinch as a result of credit restrictions.
Hebei, China’s biggest steel making province, has seen its share of total production dip steadily this year as local mills struggle to run at full capacity amid tougher pollution controls and credit restrictions.
Source – Reuters