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Rebar futures reversed down yesterday and took SGX futures with them. A long-term chart shows the critical levels we are at for rebar prices. I do not expect them to hold:
Why am I so persistently bearish at this juncture? Chinese property is a disaster and it appears Beijing is happy enough with that state of affairs.
Yesterday it offer a lousy 10bps cut to mortgage rates while property sales continue to shock:
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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific's leading geo-politics and economics portal.
He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.
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