* Construction boom buoys Chinese steel prices
* Inventories of long products fell last week
* Iron ore indexes highest since May on restocking
By Ruby Lian and Manolo Serapio Jr
SHANGHAI/SINGAPORE, July 18 (Reuters) - Chinese steel futures rose more than 1 percent to their highest in more than two months on Monday, as demand for long steel products remained solid amid a busier construction sector, pushing up iron ore indexes to their loftiest since May.
The most active October rebar contract on the Shanghai Futures Exchange rose as high as 4,925 yuan per tonne, a level not seen since May 5, before trimming gains to 4,909 yuan by the midday break, but standing up 0.8 percent.
The price of rebar, mainly used for construction, could continue to track higher in the next few weeks, as China accelerates construction of affordable housing units to ease asset prices and boost infrastructure in western regions.
"Traders are upbeat on rebar prices this summer and expect a rise ranging between 100 yuan and 200 yuan per tonne by the end of August," said a steel trader in Shanghai.
"We don't have any big concerns on fundamentals for rebar prices now, and all we can see is the country is quickening its urbanization and social housing project."
Makers of long steel products in China, the world's top producer, have boosted the utilisation rate of plants to above 95 percent, according to market estimates, to cash in on strong steel demand and prices.
"Inventories fell a lot last week, propping up investors' confidence that demand remained quite solid," said Wu Wenan, an analyst with HNA Topwin Futures.
Inventories of rebar in major cities in China fell by 135,820 tonnes on Friday from a week earlier, and wire rod dropped by 41,390 tonnes, data from industry consultancy Mysteel showed.
RESTOCKING BUOYS IRON ORE
Rising steel prices and output bode well for iron ore prices, driving up global indexes to their highest in nearly two months.
"Chinese steel mills might continue to restock iron ore this week while steel prices perform very well, which will keep iron ore prices firm," said an iron ore trader in eastern China's Shandong province.
Quotes for Australian 62-grade Newman iron ore fines rose by a dollar from Friday to $179-181 a tonne, including freight, said Chinese consultancy Umetal.
Spot offers for Indian 63.5/63-grade ore remained firm at $182-$184 a tonne.
Metal Bulletin's 62-percent iron ore index .IO62-CNO=MB edged up 99 cents to $174.06 a tonne on Friday, its highest since May 24, and The Steel Index's benchmark .IO62-CNI=SI rose half a dollar to $174.60 a tonne, a level not seen since May 19.
Iron ore swaps <0#SGXIOS:> continued to fall after recent sharp gains.
The Singapore Exchange-cleared July contract fell 81 cents to $172.19 a tonne, August dipped 87 cents to $170.13 and September declined $1.02 to $168.31.
The most active October rebar contract on the Shanghai Futures Exchange rose as high as 4,925 yuan per tonne, a level not seen since May 5, before trimming gains to 4,909 yuan by the midday break, but standing up 0.8 percent.
The price of rebar, mainly used for construction, could continue to track higher in the next few weeks, as China accelerates construction of affordable housing units to ease asset prices and boost infrastructure in western regions.
"Traders are upbeat on rebar prices this summer and expect a rise ranging between 100 yuan and 200 yuan per tonne by the end of August," said a steel trader in Shanghai.
"We don't have any big concerns on fundamentals for rebar prices now, and all we can see is the country is quickening its urbanization and social housing project."
Makers of long steel products in China, the world's top producer, have boosted the utilisation rate of plants to above 95 percent, according to market estimates, to cash in on strong steel demand and prices.
"Inventories fell a lot last week, propping up investors' confidence that demand remained quite solid," said Wu Wenan, an analyst with HNA Topwin Futures.
Inventories of rebar in major cities in China fell by 135,820 tonnes on Friday from a week earlier, and wire rod dropped by 41,390 tonnes, data from industry consultancy Mysteel showed.
RESTOCKING BUOYS IRON ORE
Rising steel prices and output bode well for iron ore prices, driving up global indexes to their highest in nearly two months.
"Chinese steel mills might continue to restock iron ore this week while steel prices perform very well, which will keep iron ore prices firm," said an iron ore trader in eastern China's Shandong province.
Quotes for Australian 62-grade Newman iron ore fines rose by a dollar from Friday to $179-181 a tonne, including freight, said Chinese consultancy Umetal.
Spot offers for Indian 63.5/63-grade ore remained firm at $182-$184 a tonne.
Metal Bulletin's 62-percent iron ore index .IO62-CNO=MB edged up 99 cents to $174.06 a tonne on Friday, its highest since May 24, and The Steel Index's benchmark .IO62-CNI=SI rose half a dollar to $174.60 a tonne, a level not seen since May 19.
Iron ore swaps <0#SGXIOS:> continued to fall after recent sharp gains.
The Singapore Exchange-cleared July contract fell 81 cents to $172.19 a tonne, August dipped 87 cents to $170.13 and September declined $1.02 to $168.31.
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1 comment:
nice information you all doing grt keep it up,i think this will also effect the india market
steel price in india
government jobs in india
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