Chinese steel futures traded higher on Thursday, with investors awaiting government measures to stimulate the economy due to the recent resurgence of Covid-19 cases.
The Chinese government said on Wednesday it will use timely cuts to reserve requirements and other tools to support the economy, as well as industries and small businesses hit by the pandemic.
The most active steel rebar for construction material contract on the Shanghai Futures Exchange for October delivery gained 0.6% to 5,004 yuan ($786.00) a tonne.
Hot-rolled coils used in the manufacturing sector rose 0.6% to RMB 5,160 per tonne. The May stainless steel futures contract rose 0.8% to 19,830 yuan a tonne.
Benchmark iron ore futures on the Dalian Commodity Exchange for September delivery closed up 0.1% at 902 yuan a tonne.
Spot prices for iron ore with 62% iron content for delivery to China rose by $1 to $153 a tonne, according to consultancy SteelHome.
Li Wentao, an analyst at Tianfeng Futures, pointed out that some Chinese cities have recently relaxed their home sales policies.
Wentao also expects steel demand to recover in the second half of the year and signaled that prices for steelmaking raw materials such as iron ore were still high and putting pressure on mills’ profits.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
