Chinese rebar futures jumped 4 percent to a four-year high on Friday, reflecting strong demand for construction material from the world's largest consumer.
Rising steel prices have boosted profit margins for Chinese factories, potentially driving growth. Iron ore raw material prices also rose.
“As margins strengthened, there was more incentive for steelmakers to produce more steel products to meet demand,” said Helen Lau, an analyst at Argonaut Securities. "Against this backdrop, we expect further increases in steel and iron ore prices."
The most active rebar contract on the Shanghai Futures Exchange closed at 3882 yuan ($ 578) a tonne after it climbed to 3899 yuan during the trading day, the strongest level since August 2013.
Higher infrastructure spending in China has spurred demand for steel construction products, which has strengthened the market as Beijing simultaneously squeezes producers of heavily polluting lower quality products.
Stronger futures have raised physical iron ore rates, pushing spot prices above $ 70 per ton for the first time in four months.
Iron ore for delivery to the Chinese port of Qingdao rose 0.9 percent to $ 72.93 a tonne Thursday, according to Metal Bulletin. This figure touched $ 73.70 on Monday.
Rebar on the Shanghai Stock Exchange hits a new high
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Azovpromstal® 5 August 2017 г. 11:28 |
