Chinese Rebar Nears '09 Lows

12/18/12 02:33PM EST

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

© 2024 Hedgeye Risk Management, LLC. The information contained herein is the property of Hedgeye, which reserves all rights thereto. Redistribution of any part of this information is prohibited without the express written consent of Hedgeye. Hedgeye is not responsible for any errors in or omissions to this information, or for any consequences that may result from the use of this information.