BEIJING: Steel rebar prices on China's Shanghai Futures Exchange rose for a second straight session amid demand optimism after the rainy season, but remained in a tight range as uncertainties over the extent of a rebound in consumption kept investors on edge.
The most-active rebar futures on the Shanghai bourse, for October delivery, closed up 0.3% to 3,746 yuan ($535.66) per tonne.
Utilisation rates at blast furnaces and output of steel products have eased in recent weeks as rains and floods hit demand from downstream sectors such as construction, but still remain at relatively high levels as the market expects consumption to resume after the off-peak season.
"If demand picks up quickly after the monsoon season then prices for steel products and iron ore will follow," Huatai Futures wrote in a note, but added it was unclear whether expectations of high consumption could be realised.
Hot-rolled coils, used in cars and home appliances, gained 0.9% to 3,773 yuan per tonne
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