Chinese steel prices sink after surprise interest rate hike
Oct 20, 2010 | 12:35 PM
| Henry Chen
Chinese steel prices sagged Wednesday as markets were rattled by the government raising interest rates for the first time in nearly two years.
"The surprise rate hike (of 25 basis points) resulted in a big drop in forward prices on the Shanghai Steel Exchange, which has pushed down spot market prices," a major trader in Shanghai said.
But hot-rolled coil (HRC) prices were already looking less robust, market participants said.
"High inventory and weak domestic sales are weighing on domestic HRC prices," another market participant said.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute — no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Subscribe Now
Click Here
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.
Take a Free trial
Click Here