Economic indicators suggest that government stimulus is boosting the ailing construction industry, which should flow through to stronger consumption for the steel-making material. Set against that, a snap lockdown in the steel hub of Tangshan is a reminder that China’s Covid Zero policies could suppress output and sap demand.
Iron ore in Singapore fell 0.7 per cent to $US96.40 a tonne as of 3:52 p.m, having climbed as much as 2.1 per cent earlier. Futures in Dalian closed 1.4 per cent lower, while steel rebar and hot-rolled coil contracts retreated in Shanghai.
Higher steel output and falling rebar inventories are signaling that Beijing’s bid to stimulate construction after an almost yearlong property rout are having a positive impact. Daily steel output edged up 3.3 per cent in the first 10 days of September compared with the end of August, while new investments are fueling building activity.
Production of LME deliverable KAS-branded aluminium at Kazakhstan’s Eurasian Resources Group has reached the four-million-tonnes milestone
