Chinese rebar futures fell for the 4th straight session on Monday. The most active rebar futures on the Shanghai Futures Exchange fell 1.6 percent to CNY 2,524 a tonne by the midday break.
Slowing construction activities in northern China due to cold temperature have cut demand for steel products, while persistently tight liquidity in the new year has constrained traders’ restocking.
Mr Xia Junyan, an analyst with Everbright Futures in Shanghai, said that “Traders are reluctant to restock as steel demand is weakening and their cash flow remains extremely tight around this time, when banks urge loan repayments but keep cutting new credit lines.”
Source – Reuters
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