“Recently the anticipation of reducing crude steel output has made a comeback,” SinoSteel Futures said in a note, adding that some local governments have issued related documents although details are pending further notice.
The most actively traded construction steel rebar on the Shanghai Futures Exchange, for October delivery, rose 3.3% to 5,439 yuan ($840.99) per tonne at close.
Hot rolled coils, used in the manufacturing sector, jumped 3.8% to 5,768 yuan a tonne, the highest closing price since May 19.
The August contract for stainless steel on the Shanghai bourse inched up 0.3% to 16,825 yuan per tonne.
Prices for steelmaking ingredients were mixed on the Dalian Commodity Exchange.
Benchmark iron ore futures, for September delivery, recovered from drop in morning session and ended up 1% at 1,244 yuan a tonne.
“Market participants have started to trade based on the expectation for lower output... while iron ore fundamentals also not supporting big gains in its prices,” according to SinoSteel Futures.
Production of LME deliverable KAS-branded aluminium at Kazakhstan’s Eurasian Resources Group has reached the four-million-tonnes milestone
