BEIJING- Chinese steel futures stabilized on Tuesday after posting big losses in the previous session, as the state council urged local governments to ensure smooth transportation of key production materials.
China’s State Council, or cabinet, said on Monday local authorities should “spare no effort” to unblock the transportation channels, and ensure freight logistics such as daily necessities, key agriculture, energy and raw materials.
Transportation has been disrupted recently amid the country’s measures to prevent the spread of COVID-19, resulting in higher steel product inventories at mills and with traders.
The most-active steel rebar on the Shanghai Futures Exchange, for October delivery, gained 0.7 percent to 4,961 yuan ($778.99) per ton as of 0252 GMT.
Hot rolled coils used in the manufacturing sector edged up 0.3 percent to 5,105 yuan a ton. Stainless steel futures fell 1 percent to 19,280 yuan a ton.
However, analysts are still cautious about downstream steel consumption as the ongoing outbreak continues to hurt demand. China’s auto sales dived nearly 12 percent in March from the same period a year earlier, according to the industry association.
