Industry News

China steel prices hit one-week highs on upbeat industrial output data

Views : 145
Update time : 2021-12-15 19:27:42

Construction steel rebar's most-active May contract on the Shanghai Futures Exchange rose 1.7% to 4,468 yuan ($702) a tonne, its strongest since Dec. 8.

Hot rolled coil, which is steel used in car bodies and home appliances, climbed 2.4% to 4,650 yuan a tonne, also its loftiest since Dec. 8.

Factory output rose 3.8% in November from a year earlier, accelerating from a 3.5% increase in October, official data showed, supported by stronger energy production and a moderation in raw materials prices.

But crude steel output fell for the sixth consecutive month in November, slipping 3.2% from October, as production restrictions to combat pollution continued and construction demand remained stagnant.

The Dalian Commodity Exchange's most-traded May contract for iron ore, a key steelmaking ingredient, fell as much as 2.6%.

On the Singapore Exchange, the most-active January contract was up 0.1% at $113 by 0338 GMT, after rising 1.6% earlier in the session.

"The China policy landscape at the macro-level, including moves towards decarbonisation, remains a cap over the medium-term demand outlook for iron ore," ING analysts said in their 2022 outlook for commodities.

They expect iron ore prices to weaken to $100 a tonne over 2022, "with the main upside risks still being potential supply chain disruptions in light of the Omicron variant".

Spot iron ore in China stood at $115.50 a tonne on Tuesday, the highest since Oct. 28, but just half of a record peak scaled in May, according to SteelHome consultancy data.

Shanghai stainless steel rose 1.4%.

Dalian coking coal gained 0.4%, while coke advanced 1%.

Related News
Read More >>
After steel and aluminum, Trump to impose tariffs on copper After steel and aluminum, Trump to impose tariffs on copper
Feb .28.2025
After steel and aluminum, Trump to impose tariffs on copper
Blastr Green Steel partners with Aurora Infrastructure for Finland plant Blastr Green Steel partners with Aurora Infrastructure for Finland plant
Feb .28.2025
Blastr Green Steel partners with Aurora Infrastructure for Finland plant
Steel Partners Holdings LP's 6.00% Cumulative Preferred Units Steel Partners Holdings LP's 6.00% Cumulative Preferred Units
Feb .28.2025
Steel Partners Holdings LP's 6.00% Cumulative Preferred Units
Oil prices advance despite concern over more US tariffs Oil prices advance despite concern over more US tariffs
Feb .28.2025
Oil prices advance despite concern over more US tariffs