03har schreef op 2 augustus 2021 09:44:
China steel futures drop by 6pc on output concerns
Business | 2 Aug 2021 11:47 am
Chinese ferrous futures fell on Monday, with steel rebar and hot rolled coils both plunging some 6 percent, after Beijing updated its stance on carbon reduction work, raising worries of an adjustment in output cuts, Reuters reports.
A Politburo meeting chaired by President Xi Jinping on Friday said China should avoid "campaign-style" carbon reduction efforts.
While there were some places blindly launched projects with high emissions and energy consumption, there were others that "over-reacted" and made emission-cut plans too early, state media Xinhua said in a commentary, adding that such an attempt could affect normal economic development.
"The requirement (by Politburo) could revise the crude steel output cut task, and possibly have a strong impact on steel prices in the short term," analysts with Haitong Futures said in a note.
Both steel rebar and hot rolled coils are set to post their biggest percentage loss in ten weeks.
The most-traded construction rebar on the Shanghai Futures Exchange, for October delivery, slumped by 6.4 percent at 5,367 yuan (US$829.89) per ton. They were down by 5. percent%, as of 0208 GMT.