Steel futures in China showed a recovery on Tuesday (12) after heavy losses in the previous session, as local governments were urged to ensure smooth transport of key production materials.
China’s State Council said on Monday that local authorities should “spare no efforts” to unblock transport channels and ensure logistics for daily necessities and agricultural, energy and raw materials.
Transport has been hampered recently amid measures by the Chinese government to prevent the spread of Covid-19, resulting in increased inventories of steel products at mills and traders.
The most active steel rebar on the Shanghai Futures Exchange for October delivery jumped 2.2% to 5,035 yuan ($790.57) a tonne at close.
Hot rolled coils used in the manufacturing sector ended up 1.8% at RMB 5,180 per tonne. Stainless steel futures rose 0.4% at 19,555 yuan a tonne.
However, analysts are still wary of steel consumption as the current Covid-19 outbreak continues to dampen demand.
Raw materials rose on the Dalian Stock Exchange after the steel hub city of Tangshan lifted a general lockdown.
Benchmark iron ore futures for September delivery rose 4.4% to 925 yuan a tonne. Spot prices for 62% iron ore rose $3.50 to $154.0 a ton, according to consultancy SteelHome.
Source: CNN Brasil
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