Chinese steel futures climbed to their strongest level in five weeks, keeping inventories on the rise in construction demand, with iron ore rising to a one-month high.
Coke futures also surged to a five-week high, surging more than 4 percent, and a group of small Chinese producers are considering cutting production to revive prices.
The most active rebar contract on the Shanghai Futures Exchange climbed to 3,555 yuan ($ 565) a tonne, the highest rise since March 16.
Inventories of rebar and other steel products for the construction industry fell 16 percent to 8.25 million tonnes from a five-year high in mid-March, according to data compiled by consulting firm SteelHome. SH-TOT-RBARINV
According to an iron ore trader in Shanghai, some Chinese steelmakers raised prices over the weekend in anticipation of tougher demand.
Steel demand in China, the world's largest consumer, tends to be strongest in April and May, when the construction sector is at its busiest time of the year.
Prices for rolled metal are growing in China
There are no comments yet.