SHANGHAI, Oct 15: Chinese steel futures edged up to a near three-week high on a pick-up in demand, though concerns over a fall in demand in the coming weeks limited the gains.
Steel demand in the world’s top consumer starts to wane in November as the cold temperature in northern regions hamper construction sector, the biggest steel consumer.
‘Our current orderbooks are not strong and weaker than last month, and I do not expect any big turnaround in prices in the fourth quarter due to lower demand but still firm production,’ said an official with a major steelmaker in northern China.
China’s average daily crude steel output edged up to 2.152 million tonnes in the last 10 days of September from 2.144 million tonnes in the previous 10-day period, data from the China Iron and Steel Association showed.
The most-traded rebar for January settlement on the Shanghai Futures Exchange climbed up 0.7 percent to a session high of 3,636 yuan ($600) a tonne, its highest since Sept. 25. Chinese market were shut on Oct. 1-7.
Iron ore prices stood firm after the holiday as steel mills replenished stocks to maintain high production, though at a wary and slow pace.
Benchmark 62-percent grade iron ore edged up 0.4 percent to $133.60 a tonne on Monday, the highest level for the steelmaking raw material since Sept. 26, according to data compiler Steel Index.
Iron ore swaps cleared by the Singapore Exchange rose across the board on Monday, with the most active November contract up $1.19 to $130.44 a tonne.
China’s Dalian Commodity Exchange is set to launch the country’s first iron ore futures on Oct. 18, the exchange said in a website statement on Monday.
(AGENCIES)
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