Steel soars in China with production cuts amid peak demand period – Money Times

steel industry
The most active stainless steel contract on the Shanghai Futures Exchange, for October, jumped 6.1% to 18,760 Yuan per ton (Image: Pixabay/zephylwer0)

The futures contracts of steel traded in China advanced on Friday as stainless followed gains in rebar and hot rolled coils and jumped more than 6% as production constraints during the period of peak demand raise concerns about global supply.

Apparent demand for five major steel products, including materials used in construction and manufacturing, increased for the third week in a row, reaching 10.41m tonnes, according to data from consultancy Mysteel compiled through Thursday.

Blast furnace capacity utilization rates at 162 mills in China, however, fell to 75.06% this week, from 75.53% the week before, according to Mysteel.

The most active stainless steel contract on the Shanghai Futures Exchange for October jumped 6.1% to 18,760 Yuan ($2,904.97) a ton before closing up 5.9% at 18,715 Yuan.

Shanghai exchange hot rolled coil futures for January delivery advanced 4.3% to 5,784 Yuan/tonne, pegging weekly gains of 5.3%.

Steel rebar used in construction rose 2.4% to 5,408 Yuan/tonne. In the week, accumulated gain of 3.6%.

Prices for steel raw materials also operated on the rise. The reference of the iron ore in the bag of commodities of Dalian rose 1.4% to 786 yuan a ton.

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