China’s steel rally: False dawn or market shift?

hinese steel prices are enjoying a powerful rally, but the gains may just be a false dawn as the issue of excess capacity remains unresolved. Rebar futures in Shanghai soared 6 percent on Wednesday, extending a three-day winning streak to close at a 14-month high.

stock market updates-sai proficient research
stock market updates-Sai Proficient Research

Prices are more than 40 percent higher year-to-date thanks to a period of tightened supply and healthy demand from the real-estate market, which accounts for 50 percent of Chinese steel consumption. The rally represents a turnaround from a more somber mood last year as concerns over China’s economic health caused prices to tank.

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