Steel rebar futures reached CNY 3,300 per tonne in November, the highest level in over a month, as markets reassessed the impact of China’s economic stimulus on demand for ferrous metals.
Steel rebar futures reach CNY3,300 per tonne
Infrastructure investment in China increased by 4.3% in the first 10 months of the year, suggesting that Beijing's monetary and fiscal support measures may be boosting economic activity. The Chinese government recently approved a $1.4 trillion debt package to help local governments swap hidden debt and reduce financing costs, aiming to stimulate the economy, following a series of cuts in lending and liquidity rates by the PBoC.
Steel production in China rises
As a result, steel production in China rose to 81.9 million tons in October, despite weak domestic demand. Chinese mills have increasingly turned to export markets, with exports rising to 11.2 million tons, the second-highest on record, even as trade barriers from other governments have grown.
