However, its strict lockdowns are expected to “continue to weigh on industrial activity, resulting in weaker demand for metals,” ANZ Research said in a note. Furthermore, heavy rains in southwest and southern China weighed on short-term construction material demand, while falling raw material prices will no longer underpin steel prices, said Haitong Futures.
The most-active steel rebar contract on the Shanghai Futures Exchange for October delivery inched up 0.3% to 4,670 yuan ($686.6) a tonne, but slipped 1.4% this week. Hot-rolled coils, used in the manufacturing sector, edged 0.3% higher to 4,767 yuan a tonne at close. They shed 1.3% for the week. Stainless steel, for June delivery, on the Shanghai bourse fell 0.9% to 18,830 yuan per tonne.
Benchmark iron ore futures on the Dalian Commodity Exchange, for September delivery, closed up 1% at 823 yuan a tonne, recovering from losses in early session.
