Shanghai rebar gains for 3rd week, outlook upbeat
SINGAPORE: Shanghai rebar futures edged up on Friday and extended their winning streak to a third consecutive week on brisk construction demand in top steel producer China.
Higher steel prices helped boost demand for iron ore, the key steelmaking ingredient, lifting price indexes on Thursday, although traders said some Chinese mills were more keen on buying lower-grade material.
"Iron ore prices may remain firm next week as steel prices will continue to edge up amid construction activities," said an iron ore trader in Beijing.
"Rebar and wire rod producers are enjoying high profit margins and I don't expect iron ore prices to fall easily."
China's steel production could maintain its breakneck pace in the second half of 2011 as a construction boom buoys demand, with full-year output seen hitting at least 700 million.
Copyright Reuters, 2011
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