SHANGHAI- Shanghai steel futures extended losses in thin trading on Thursday ahead of a week-long Lunar New Year break on worries that a new coronavirus outbreak in the country would hit construction activity.
The Shanghai Futures Exchange’s most-traded steel rebar contract fell 0.4 percent to 3,523 yuan ($510.28) per ton on Thursday.
It is down about 2 percent in what would be its first weekly fall in a month.
Shanghai’s hot-rolled steel coil, used in cars and home appliances, also slipped 0.4 percent to 3,534 yuan per ton and is down nearly 3 percent for the week so far.
“The spreading coronavirus in China is raising concerns that the busy construction period following the Lunar New year will be delayed,” ANZ Research wrote in a note.
“Construction activity has been positive for the steel and iron ore sector. However, any disruption at this peak time could rattle the fragile recovery that emerged in December,” it added. – Reuters
