Steel reinforcement-bar futures in Shanghai fell for the first time in 11 days as steel mills and investors sold to take advantage of prices at the highest level in four months.

Rebar for January delivery on the Shanghai Futures Exchange fell 0.5 percent to close at 3,819 yuan ($624) a metric ton. The contract settled at 3,838 yuan yesterday, the highest close for a most-active contract since April 12.

Eoin Treacy's view Few sectors have been as bombed out as steel, as fears for the sustainability of China's growth and Europe's recession weighed on expectations. However, with a continued monetary tailwind and improving European fundamentals, albeit from a low base, cautious optimism is beginning to prevail.

Austrian listed Voestalpine broke out of an 18-month range two weeks ago and a sustained move back below €28 would be required to check recovery potential. Arcelor Mittal found support last week in the region of €9 and has rebounded to post new five-month highs. A sustained move below last week's low would be required to question medium-term upside potential. Russian focused but UK listed Evraz dropped from 150p to 100p from May but has firmed from that region over the last week. A sustained move below 100p would now be required to check potential for a further unwinding of the overextension relative to the 200-day MA. (Also see Comment of the Day on May 22nd) .

Among European speciality steel companies, Belgian listed, Bekaert produces wire for the utility and energy sectors among other business lines. The share broke out of a more than yearlong base in June and continues to hold a progression of higher reaction lows. A sustained move below the 200-day MA would be required to question medium-term upside potential.

Italian listed Tenaris manufactures pipes for the energy sector. The share had been consolidating mostly below €17 for the last year and broke out to new closing highs this week.

France listed Vallourec produces seamless tubes, pipes, automotive parts and stainless steel. The share has held a progression of higher reaction lows for the last year and broke out to new recovery highs at the beginning of August