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We’ve always been a fan of Chinese steel rebar as an indicator of Chinese construction activity. The spot price of Chinese rebar is now nearing 2009 lows, reflecting weak demand for the commodity. There’s now a wide spread between the price of Brent crude oil and Chinese rebar, which historically had a positive correlation. It will take a stronger US dollar and a boost in Chinese construction to bring the two commodities together again.

Chinese Rebar Nears '09 Lows - chinarebar