- China’s steel prices are on the rise
- In March, Beijing announced plans to slash steel capacity by 50 million metric tons this year in efforts to tackle pollution and curb excess supply
- Higher prices translates to better profits for industry, but it also means increased costs for sectors like construction that use much of the alloy
Talk about a roller coaster. Chinese steel prices are falling this week after spiking to record highs last week as a series of curbs targeting speculative trading kick in.
Starting Tuesday, one of China’s biggest commodities derivatives markets is raising transaction fees to 0.05 percent of the total value, from 0.01 percent, on steel rebar futures contracts for delivery in October 2017 and January 2018. The Shanghai Futures Exchange is also limiting intraday positions on those contracts to 8,000 lots.
Source From: Sophia Yan, CNBC