Steel Ingredients in China Rise Significantly

Steel prices on China's Dalian Commodity Exchange jumped on Wednesday to catch up with the strong trend in the spot market.

The most traded iron ore futures on the Dalian Stock Exchange for September delivery rose 4.8% to 1,192 yuan ($ 186.80) a tonne during the morning session. As of 02:50 GMT, they are up 3% to 1,171 yuan a tonne.

Spot prices for 62% iron ore for shipment to China rose $ 6 to $ 206.5 a tonne on Tuesday, according to consulting firm SteelHome.

Dalian coking coal futures rose 3.9% to RMB 1,865 a tonne, while coke futures rose 2.8% to RMB 2,593 a tonne.

“In the short term, the market is still trading in hopes of easing restrictions on steel production,” analysts at Huatai Futures wrote.

Authorities at the Tangshan Steel Center discussed easing production cuts at some plants, local media reported earlier this week.

Meanwhile, the coke market is in a state of backwardation, which leaves room for futures prices to rise, Huatai Futures added.

Steel prices on the Shanghai Futures Exchange also rose.

Construction rebar for October delivery rose 1.8% to RMB 5,068 a tonne.

Hot rolled coil futures, used in the manufacturing sector, jumped 2.4% to RMB 5,389 a tonne.

July stainless steel futures were up 0.3% at 16,050 yuan a tonne.

Officials from the country's market regulator said the government "attaches great importance" to commodity prices by regularly monitoring trends in iron ore, steel, coal, crude oil and other products and exercising targeted surveillance.