SHANGHAI, Feb 26: Chinese rebar futures edged up on Thursday but gains were limited as demand in the world’s top consumer remained slow after a week-long holiday. The most active rebar futures for May settlement on the Shanghai Futures Exchange inched up to 2,497 yuan ($399) a tonne by the midday break. It posted the biggest daily loss in 2-1/2 months on Wednesday, ending at 2,489 yuan. ‘Physical trading hasn’t kicked off yet after the holiday, and we expect the supply glut to continue weighing on the market before construction projects fully resume in a few weeks,’ said a Shanghai-based trader.
Steel demand is expected to pick up from mid-March, when construction projects in northern China generally start to recover as the weather gets warmer, traders said. The benchmark May iron ore contract on the Dalian Commodity Exchange climbed 0.4 percent to trade at 484 yuan a tonne. Some Chinese steel mills have held inventories for about 10-day use and are expected to restock the raw material, given that steel demand is likely to pick up substantially. ‘There are a few inquiries coming from steel mills but some mills may have to increase buying after they finish maintenance and bring steel production back to normal,’ said an iron ore trader in Shanghai.
(AGENCIES)
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