Signs of an imminent price readjustment strengthened in June. Prices continued to slip in the US and Europe and, for most of the month also declined in China. Here, tighter credit supply and tighter controls on regional governments' expenditure have started to hamper investment growth. This means that demand for construction steel has peaked for the year and will start to ease from now on. Support to prices will fade also on the capacity front. As most closures of induction furnaces are completed, the pace at which production increases at legitimate operations is set to decline. With it, the feeling of tightness that has supported sky-high rebar margins will also wane. To this mix of weakening demand and stabilising supply, add the negative price outlook for steelmaking raw materials and the potential for price falls in China is vast.