China steel rebar inches higher on government stimulus plans
Steel rebar on the Shanghai Futures Exchange snapped three straight sessions of losses to inch up on Thursday, as government financial support sparked hopes for a demand increase, although the sector is still in the midst of its off-peak rainy season.
China’s finance ministry has said it is planning to sell more special treasury bonds to fund public health-related infrastructure facilities and aid a virus-hit economy, part of a proposal to issue 1 trillion yuan in such bonds this year.
The most-traded October contract of construction steel rebar closed 0.3% higher at 3,573 yuan ($505.89) per tonne, rising for the first time this week.
Stainless steel futures on the Shanghai bourse, for August delivery, jumped 1.8% to 13,355 yuan per tonne.
However, hot-rolled coils, used in the manufacturing sector, dipped 0.2% to 3,563 yuan a tonne.
* Benchmark iron ore futures on the Dalian Commodity Exchange, for September delivery, closed 0.4% lower at 739 yuan a tonne.
* Spot prices of iron ore with 62% iron content for delivery to China, as tracked by SteelHome consultancy, held at $101.50 per tonne on Wednesday, unchanged from the previous session.
* Dalian coking coal increased 1.5% to 1,193 yuan a tonne. Coke edged down 0.2% to 1,873 yuan a tonne.
* China’s vehicle sales for June are set to rise 11% year-on-year to 2.28 million units, the country’s top auto industry body said in a post on its official WeChat account.
* China will allow local governments to use part of the money they raise from special bonds this year to recapitalise some small banks, the cabinet said on Wednesday, seeking to shore up banks and support struggling small firms amid the coronavirus crisis.
Source: Reuters (Reporting by Min Zhang and Tom Daly; Editing by Tom Hogue and Devika Syamnath)