The fall in demand from Asian customers can be explained by the decline in the Chinese stock market and weakening iron ore prices, sources told Fastmarkets on Wednesday September 16.
On Wednesday, the most-traded January rebar futures contract on the Shanghai Futures Exchange closed at 3,575 yuan ($527) per tonne
, down by 17 yuan per tonne from Tuesday’s close.
Iron ore prices also slumped further on Wednesday, on weaker-than-expected demand for steel, raising concerns that the market could start to move into bearish territory.
Fastmarkets’ daily iron ore 62% Fe fines index, cfr Qingdao
, was $124.20 per tonne on September 16, down by $4.32 per tonne cfr day on day.