This decline comes amidst sustained worries about a sluggish Chinese economy, particularly following the week-long Lunar New Year festivities.
The People's Bank of China (PBoC) opted to maintain its rate on the medium-term lending facility unchanged, influenced by pressure on the yuan, which constrained further easing of monetary policy to stimulate steel-intensive industries.
Additionally, apprehensions persist regarding the effectiveness of fiscal support in revitalizing activity within the construction and manufacturing sectors, dampening interest in metal inputs.
Consequently, stockpiles of steel rebar in major Chinese warehouses ballooned to over five times their previous levels, reaching 112 thousand tonnes by mid-February. Concurrently, recent data indicates a 4% increase in iron ore inventories during the New Year holiday period, totaling 124.3 million tonnes.
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