China ferrous materials leap on hopes of rising steel output

BEIJING, Dec 16 (Reuters) – Chinese steelmaking raw materials futures advanced on Thursday, with coking coal up more than 3%, fuelled by hopes of recovering steel production after stringent curbs in the first 11 months of the year.

The world’s top steel producer churned out 946.36 million tonnes of the metal during January to November, down 2.6% from the same period last year, in an accelerating decline driven by strict output curtailment. read more

Huatai Futures wrote in a note that since targets for crude steel output have now been met, some mills are resuming production and profitability is relatively good.

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A government consultancy on Wednesday predicted that China’s steel demand could dip in 2022 from this year, but consumption from infrastructure construction, automobile and other sectors will continue to offer support. read more

Benchmark iron ore futures on the Dalian Commodity Exchange , for May delivery, increased 1.6% to 666 yuan ($104.58) per tonne as of 0315 GMT.

Spot prices of iron ore with 62% iron content for delivery to China , compiled by SteelHome consultancy, was unchanged at $115.5 per tonne on Wednesday.

Dalian coking coal futures rose 3% to 2,102 yuan a tonne. Prices advanced as much as 3.6% to 2,115 yuan per tonne earlier during the session.

Coke prices on the Dalian bourse were up 1.4% at 3,039 yuan a tonne.

Steel prices on the Shanghai Futures Exchange also gained. Construction used rebar increased 1.3% to 4,480 yuan a tonne and hot rolled coils , used in the manufacturing sector, were up 1.7% at 4,676 yuan per tonne.

Shanghai stainless steel futures , for February delivery, inched 0.2% higher to 16,130 yuan a tonne.

($1 = 6.3681 Chinese yuan renminbi)

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Reporting by Min Zhang in Beijing and Enrico Dela Cruz in Manila; Editing by Devika Syamnath

Our Standards: The Thomson Reuters Trust Principles.

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