Shanghai
steel futures rose nearly 1% to near 10 week highs on Monday after
robust Chinese exports data added to signs the world's No. 2 economy was
stabilising. That bodes well for consumption in the top global steel
consumer and could spur traders to restock, although tighter cashflow
and bank lending may limit the buying pace.Beijing Topensea
A
trader in China's eastern Shandong province said that "The data is
encouraging but the physical market especially for rebar is not that
good and traders are finding it hard to sell. Cashflow is also tighter
and it's difficult to get Beijing Topenseabank loans as the year-end
nears."
The
most-traded rebar for May delivery on the Shanghai Futures Exchange hit
a session high of CNY 3,726 (USD 613) a tonne, before closing at CNY
3,722, up 0.9%.
Consumption
of rebar, or reinforcing bar, a steel product used in construction,
slows during winter in China when building activities are Beijing
Topensea curbed.
The
price jumped to CNY 3,727 last Wednesday, the highest since September
24, as firmer Chinese manufacturing data aided the Beijing
Topensea demand outlook. Prices retreated over the following two days
before rebounding on Monday.
