World Economy

Chinese Steel Futures Tumble

Chinese Steel Futures TumbleChinese Steel Futures Tumble

Chinese steel futures fell more than 5% on Tuesday, extending a decline in the previous session as slower home sales spurred investors to take profits amid concerns about the world’s second-biggest economy, Business Recorder reported. China’s home price rises slowed in June for a second straight month, adding to fears that a construction-led economic rebound in the economy may be unsustainable, despite a big spike in new yuan loans in June. “The market is divided now. Some expect a big drop in home price rises will weigh on the steel sector, while some still hope that supply interruptions and low inventories will underpin prices,” said Zhao Chaoyue, an analyst with Merchant Futures in Shenzhen.