Shanghai rebar falls as investors shrug off

BEIJING: Chinese steel prices fell nearly two per cent on Monday, curbed by weak market sentiment despite a pledge by Beijing to step up support for the economy in 2019.

Top policy makers said at an annual meeting last week that China will keep next year’s economic growth within a “reasonable range” by cutting taxes and keeping liquidity ample, the official Xinhua news agency said.

The long-awaited meeting extended current policies but failed to result in further stimulus packages, analysts from CITIC Futures said in a note in Mandarin.

“Steel prices are facing adjustment pressures as the expectation of favourable policies fell through,” they said.

Benchmark Shanghai rebar futures dipped as much as 1.9 per cent during early trade. The construction product was down 1.4 per cent at 3,455 yuan (US$499.93) a tonne as of 0215 GMT.

Steel prices have been supported by temporary production cuts in the top steelmaking hub of Tangshan.

The city has ordered steel mills to shut all sintering machines and reduce additional output until December 31 in a bid cut toxic emissions.

“Steel output is expected to rebound after mills resume operation in January. However, demand is highly likely to fall during that period, which will further rein in prices,” analysts at Huatai Futures said in a note. — Reuters