Pursuits
Cars Shift Steel Use in China: Chart of the Day
This article is for subscribers only.
China’s demand growth for automotive steel sheets is trumping that for rebar, which is mainly used in construction, underscoring the nation’s efforts to “rebalance” its economy toward consumer spending.
The CHART OF THE DAY shows hot-rolled coil cost as much as 255 yuan ($41) more than rebar per metric ton last month, the widest spread since contracts for the automotive metal debuted on the Shanghai Futures Exchange in March. The gap almost quadrupled since early April. The lower panel tracks prices of the steel-product contracts, with coil at 3,306 yuan per ton, compared with 3,102 yuan for rebar.