Shanghai steel futures rise amid firm demand, high raw material prices
- The January contract for hot-rolled coil, used in the manufacturing sector, gained 0.4% to 4,333 yuan a tonne.
BEIJING: Chinese steel futures rose in early trade on Tuesday, fuelled by strong demand and surging prices for raw materials amid firmer commodity markets.
The most active construction rebar contract on the Shanghai Futures Exchange, for May delivery, jumped 1.1% to 3,918 yuan ($599.41) a tonne as of 0252 GMT.
The January contract for hot-rolled coil, used in the manufacturing sector, gained 0.4% to 4,333 yuan a tonne.
"Although consumption has weakened seasonally, it's still much better than same period in previous years," Huatai Futures wrote in a note, adding that firm steelmaking ingredient prices left limited room for a drop in the price of steel products.
Benchmark iron ore futures on the Dalian Commodity Exchange , for May delivery, rose 1.0% to 914 yuan a tonne.
The spot price of iron ore with 62% iron content for delivery to China jumped by $5 to $143.50 per tonne on Monday, according to SteelHome consultancy.
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