Chinese steel futures track raw material prices higher – Nasdaq

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Credit: REUTERS/MUYU XU

Chinese steel futures rose on Tuesday, on higher raw material prices and output-control expectations, although slowing construction activities and auto sales capped gains.

BEIJING, July 6 (Reuters)Chinese steel futures rose on Tuesday, on higher raw material prices and output-control expectations, although slowing construction activities and auto sales capped gains.

The most-actively traded construction rebar on the Shanghai Futures Exchange SRBcv1, for October delivery, gained 2.1% to 5,261 yuan ($814.25) per tonne by 0241 GMT.

Hot rolled coils SHHCcv1, used in cars and home appliances, rose 2.4% to 5,556 yuan a tonne.

The August contract for stainless steel on the Shanghai bourse SHSScv1 was up 2.1% to 16,875 yuan a tonne.

“Futures are stronger than spot prices as currently market has a relatively strong expectation on production restrictions,” GF Futures wrote in a note.

“Considering spot prices are supported by costs… (steel) will remain fluctuating at high levels,” it added.

Iron ore futures on the Dalian Commodity Exchange DCIOcv1, for September delivery, rose as much as 3.7% to 1,242 yuan per tonne.

Spot prices of iron ore with 62% iron content for delivery to China SH-CCN-IRNOR62, compiled by SteelHome consultancy, rose by $3.5 to $221 on Monday.

Dalian coking coal futures DJMcv1 rose 1.2% to 1,972 yuan and coke DCJcv1 increased 1.9% to 2,694 yuan per tonne.

“After the centenary, domestic coal mines would gradually resume production, but it still takes time for overall recovery,” Huatai Futures said in a note, adding that coking coal is expected to face tight supply in the short term.

($1 = 6.4612 Chinese yuan)

(Reporting by Min Zhang and Shivani Singh; editing by Uttaresh.V)

((min.zhang@thomsonreuters.com; (8610) 5669-2105;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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