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Chinese steel rebar futures moved in a tight range on Wednesday, but hovered around a more than 10-year high, as the market awaited a rebound in downstream demand.
“Unlike the manufacturing sector that had returned to work, construction normally restarts after the Lantern Festival,” said Wang Yingwu, chief analyst with Huatai Futures in Beijing, adding that construction demand will peak in April.
The most active construction rebar on the Shanghai Futures Exchange, for May delivery, closed up 0.8% at 4,618 yuan ($714.99) per tonne.
Hot rolled coil futures, used in cars and home appliances, dipped 0.1% to 4,816 yuan a tonne.
Wang expected growth for steel products used in manufacturing to reach 8-10% in 2021, while for the property sector at 2-4%.
Iron ore futures on the Dalian Commodity Exchange recovered from morning session, ending up 0.4% to 1,130 yuan a tonne fuelled by fewer supply from major miners and restocking demand at mills and with traders.
Shipments of the steelmaking ingredient to China stood at 56.47 million tonnes as of Feb.24, compared with 73 million tonnes the full month year ago, Refinitiv vessel-tracking data showed.
FUNDAMENTALS
* Dalian coking coal rose 0.4% to 1,483 yuan a tonne.
* Coke futures fell 0.9% to 2,579 yuan a tonne.
* Stainless steel futures on the Shanghai bourse, for April delivery, faded 1.2% to 15,195 yuan per tonne.
* China will reinforce policy support for foreign trade and ensure the smooth operations of supply chains, Wang Wentao, the new commerce minister, said on Wednesday.
* An aerospace parts maker in California is struggling to procure cold-rolled steel, while an auto and appliance parts manufacturer in Indiana is unable to secure additional supplies of hot-rolled steel from mills.
Source: Reuters