China Steel Falls On Technical Selling, Profit-taking
China’s steel futures slightly pulled back from a steep fall during morning trade on Monday, dragging down steelmaking raw materials, on technical selling and as investors took recent industry association and government statements as a cue to book profits.
Iron ore and coking coal had their biggest one-day falls in about three months amid concerns about slowing demand from the steel industry as Beijing ramps up its environmental inspections.
Some investors viewed the steel market’s failure to breach the 4,000 yuan per tonne mark on Friday, following several near-misses, as a bearish technical signal, analysts said.
The most-active rebar futures on the Shanghai Futures Exchange edged up 0.2 percent to 3,932 yuan ($592.15) a tonne, after touching an intraday high of 3,960 yuan a tonne earlier in the session.