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China steel futures rise on resilient demand
[BEIJING] China's steel futures rose on Tuesday, with the most-traded contract of rebar snapping three consecutive sessions of declines as prices propped up firm demand outlook in the infrastructure and real estate sectors.
The most-active October contract of steel rebar, used as construction materials, rose 0.5 per cent to 3,769 yuan (S$742.54) per tonne, as at 0300 GMT.
Hot-rolled coil futures on the Shanghai Futures Exchange gained 0.6 per cent to 3,789 yuan a tonne.
"The prices were mainly shored up by domestic demand," said Tang Binghua, analyst with Founder CIFCO Futures, adding that consumption for steel products could be better if overall sentiment is poor as more stimulus on infrastructure and property are expected to hedge downward risks.
Stainless steel futures on the Shanghai bourse, inched up 0.2 per cent to 13,810 yuan a tonne.
- Benchmark iron ore futures on the Dalian Commodity Exchange, for September delivery, jumped 1.6 per cent to 835 yuan a tonne.
- Spot prices for iron ore with 62 per cent iron content for delivery to China fell to US$109.5 per tonne on Monday from US$111.5 in the previous session.
- Dalian coking coal fell 0.7 per cent while coke rose 0.2 per cent.
- China is planning stricter rules for steel capacity swaps, which were stopped at the beginning of the year, and will also expand the key areas in which they are used, according to government notice.
- China's state planner said on Tuesday that it plans to cut broadband fees for companies by an average of 15 per cent.