Chinese steel futures tapers off due to over capacity issues

BEIJING (Scrap Monster): According to the economic data, which was issued today, the impetus measures taken by China were not even near to enough in order to suppress the decline in property sector, as a result of over-capacity.

According to a private survey released on Monday, the growth of china’s factory sector had fallen three months low since august. The country’s official manufacturing Purchasing Managers Index (PMI) has been plunged since august.

Today morning the most commerce rebar contracts on Shanghai Futures Exchange ended down to 0.4 per cent, a new low, which is 2,925 Yuan per ton. The most anticipated iron ore contracts for the month ended at Dalian Commodity Exchange, down to 0.8 percent, which is 622 Yuan percent.

The end-users are being motivated to retard the supply of orders, by the China Iron and Steel Association (CISA). The association also recommends them to tumble down their iron ore catalogue in the expectation of cheap prices, but the manager of Beijing based commodity trading house, stated that a development in the matter in September is likely impossible. He also stated that, there would be a probable increase in steel demand and chances of restocking but there will be no favorable changes in the matter of over capacity.