China’s steel futures prices rose about 4% on August 30, as industrial metal inventories fell for a fourth straight week and increased downstream demand.
Data from consulting firm Mysteel showed that stocks of five main steel products including rebar and hot rolled coil fell 1.1% from a week earlier to 21 million tonnes, while consumption was clear. up 1.2% to 10.36 million tons.
“With the arrival of the high season, better demand is expected and the tightening policy of crude steel cuts will benefit the long-term steel contracts,” GF Futures emphasized.
On the Shanghai trading floor, the price of steel bar for January 2020 futures trading, increased by 4% to 5,354 CNY (equivalent to 827.68 USD)/ton.
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Steel prices increased due to reduced inventories, increased demand.
The price of hot rolled coil, used in the manufacturing sector, closed on August 30, up 3.8% to 5,637 CNY.
Stainless steel futures on the Shanghai exchange rose 3.9% to 18,125 CNY/ton.
The price of raw materials for steel production on the Dalian Commodity Exchange also increased.
Iron ore futures opened 4.9% higher before giving up most of their gains. At the close, iron ore prices rose 0.7% to 835 CNY/ton.
The price of iron ore with 62% iron content for delivery to China increased by $4 to $156 a tonne.
“Global iron ore production growth will accelerate in 2021-2025 after stagnating for the previous five years,” it said, adding that China’s ore output would increase.
Coking coal prices in Dalian increased by 0.1% to CNY 2,495/ton. Coke prices rose 2.0% to CNY 3,187/ton.
China’s top steelmaker Baoshan Iron & Steel 600019.SS said steel production controls could ease cost pressures.
The southern Guangxi region vowed to resolutely control the “blind development” of energy-intensive projects and crack down on illegal projects, after the area failed to meet its energy target. in the first half of the year.
Source: VITIC/Reuters
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