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.
US employment data falls short of expectations, aluminium ingot continues destocking trend this week
