Dalian and rebar futures are trading at record lows today and here’s why from Reuters:
The growth in China’s housing prices slowed to a near one-year low in April, while property investment also lost steam in the first four months of the year as developers feel the pinch from slowing sales and rising borrowing costs.
While stocks of steel products among Chinese traders have been falling, those held by producers have been rising, suggesting an uncertain outlook for demand has been keeping traders from replenishing their inventory, said Zhou Ting, analyst at Jinrui Futures in Shenzhen.
“Given the risks in the real estate market, traders and end-users are not willing to increase their stocks and this is putting pressure on the mills,” said Zhou, adding those risks had overshadowed recent signs of recovery in China’s manufacturing sector.
Yep. No big bounce without bigger stimulus. Equities still delusional.
