Strong demand for steel in China

Steel prices in China continued to rise as the purchasing managers' index rose at the fastest pace since April 2016 in the last reporting month.

China's steel industry is booming as the government seeks to combat overcapacity and rein in its more rebellious facilities. The elimination of induction furnaces created a shortage of rebar, a reference product used in construction.

The most active rebar contract on the Shanghai Futures Exchange rose 4.9 percent to 3,740 yuan, the highest in half a year.

Data from the China Federation of Logistics and Purchasing showed on Monday that the purchasing managers' index (PMI) for the steel sector rose to 54.9 in July, the fastest pace since April 2016. China's metallurgical companies have significantly outperformed their global competitors in terms of profit margins.