Shanghai steel futures jump, post weekly gains on raw material strength
Chinese steel rebar and hot rolled coils futures rose on Friday and posted weekly gains as raw material costs jumped, but prices were kept in check by demand concerns stemming from the upcoming rainy season.
The most-traded construction rebar on the Shanghai Futures Exchange for October delivery jumped 1.4% to 5,159 yuan ($805.41) a tonne and logged the first weekly gain in four by 4.6%.
Hot rolled coils, used in cars and home appliances, edged up 0.2% to 5,434 yuan a tonne at close. They increased 2% for the week.
Stockpiles of rebar held by traders and at mills fell 3.3% to 10.42 million tonnes as of Thursday, while hot rolled coils inventories increased 0.9% to 3.54 million tonnes, weekly data compiled by Mysteel consultancy showed.
“Rebar demand from real estate and infrastructure sectors last month was weaker from a year earlier and faces off-peak season demand on a monthly basis,” analysts with GF Futures wrote in a note, adding that hot rolled coils consumption is pending overseas market.
Shanghai stainless steel futures, for July delivery, fell 3.7% to 15,535 yuan a tonne.
Prices for steelmaking ingredients on the Dalian Commodity Exchange declined.
Benchmark iron ore futures, for September delivery, closed down 1.9% at 1,169 yuan per tonne. They surged 9.9% this week.
Dalian coking coal futures were down 2.2% to 1,850 yuan a tonne.
Coke futures plunged 4.7% to 2,536 yuan per tonne.
Source: Reuters (Reporting by Min Zhang and Shivani Singh; Editing by Rashmi Aich and Ramakrishnan M.)