Steel trades up by about 8% around CNY 3760 per tonne for this month of November by new supportive and stimulating measures for the Chinese economy.

• China is considering expanding its financial supportive program by CNY 250 billion into the private developer area as the sector faced a period of defaults. The program should be supportive for the commodities as well.
• Quarantine period for individuals in close contact with Covid patients has been shortened, giving hope for other restriction easing to open the economy for higher demand.
• Recession concerns still keep the prices pressured as the monthly interval is bearish imbalanced.
• Easing of the US monetary policy due to the slower-than-expected inflation report might be beneficial for the Chinese yuan.
• Global demand might contract by 2.3%, according to reports which should pressure prices.

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The Forecast points to the downside towards CNY 3500 for a Quarter’s perspective, according to algorithm calculations and analysts estimates. However, the market trades around the lower standard deviation level of the decade’s perspective which might lead to buyers of core long positions.

The rebar version of steel is traded mostly on the Shanghai Futures Exchange and London Metal Exchange. The futures contract resembles about 10 tons. After China the biggest producers are the Eurpean Union and Japan.

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