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Steel futures plunge amid oversupply concerns; iron ore futures drop China
Times:[ 2020-01-14 Author:admin Hit:
Benchmark steel rebar futures in China fell on Monday after an industry body's forecast for the year rekindled oversupply worries.

The China Iron and Steel Association expects an increasingly obvious trend of oversupply in the sector and pledges to strictly prohibit new steel capacity addition in 2020.

The most-traded steel rebar on the Shanghai Futures Exchange, with May expiry, closed down 1.1pct at 3,530 yuan per ton.

Hot-rolled coil fell 0.9pct to 3,564 yuan per ton after the auto industry association reported the 18th straight monthly drop in auto sales in December.

The association also said China's auto market is likely to shrink for the third consecutive year in 2020 after an 8.2pct drop last year.

Steelmaking ingredients also fell, with Dalian coking coal slipping 0.04pct to 1,209 yuan per ton, while coke futures slumped as much as 2.1pct to 1,844 yuan per ton.

The most active coke futures, for May delivery, slid 1.8pct to 1,848 yuan per ton when market closed.

Iron ore futures on the Dalian Commodity Exchange, for May delivery, faltered 0.4pct to 657 yuan per ton.

Prices for spot cargoes of iron ore with 62pct iron content for delivery to China dropped to USD 94.7 per ton on Friday.
Shanghai stainless steel, for February 2020 delivery, fell 0.2pct to 14,205 yuan per ton.

China's yuan, fresh from a second year of weakening against the USD, is enjoying an unusual turn as a haven as Washington and Beijing prepare to sign an eagerly awaited Phase 1 trade deal this week.