Rebar declines in Shanghai after biggest producers lower prices

Bloomberg reported that steel reinforcement-bar futures fell in Shanghai, set for a fourth weekly loss, after the biggest steel producers across China cut prices amid slowing demand.

Rebar for May delivery on the Shanghai Futures Exchange dropped as much as 1.2% to CNY 3,546 (USD 586) a metric tonne, and was at CNY 3,550 at 10:38 AM local time. Futures are down 1.8% this week.

Jiangsu Shagang Co the biggest maker of rebar, lowered prices by CNY 130 a tonne starting January 1, while Hebei Iron & Steel Co China’s largest steelmaker by output, cut rebar by CNY 70 and lowered prices of wire by CNY 40.

Mr Lv Xiaohua an analyst at Everbright Futures Co in Shanghai said that “Producers have been forced to cut prices because of slowing demand in winter and a liquidity shortage, and that’s adding more bearishness into the market.”