The price may rebound as much as $30 a metric ton to near $150 a ton in coming weeks, UBS analysts led by Sydney-based Tom Price wrote in a report today. The benchmark Asian price has dropped 16 percent this week, heading for its biggest such decline on record, according to prices from The Steel Index Ltd.
“The scale & speed of this week’s correction has little to do with trade fundamentals,” UBS said. “The reported collapse in trade liquidity instead suggests a ‘buyer’s strike’, with consumers deferring purchases until prices stabilize.”
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