Steel Rebar futures tumbled to around CNY 4,220 per tonne, the lowest since a 10-month low hit in November 2021, as many steel mills in top producer China minimize losses and cut production. Mills in China have idled dozens of blast furnaces amid high inventories after domestic demand weakened due to COVID-19 lockdowns and bad weather. The rising prospect of a global recession also weighed on sentiment, along with China's deliberate move to curb steel output under its decarbonisation plan.
Historically, Steel reached an all time high of 6198 in May of 2021. Steel - data, forecasts, historical chart - was last updated on July of 2022.
Steel is expected to trade at 4402.35 Yuan/MT by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 4122.00 in 12 months time.