BEIJING- China’s steel futures bounced back on Tuesday snapping three sessions of losses, as fresh winter anti-pollution plans issued by the environment ministry stroked supply concerns.
The Ministry of Ecology and Environment issued new action plans during this winter for Yangtze river delta region and Fenwei plains. Further output curbs would be imposed on steel mills with utilization rate over 120 percent in 2018.
The most-active construction steel rebar contract on the Shanghai Futures Exchange, for January 2020 delivery, rose 1.8 percent to 3,428 yuan a ton.
Futures for hot-rolled coil steel, used in cars and home appliances, gained 1.2 percent at 3,359 yuan per tonne.
Iron ore futures on the Dalian Commodity Exchange, also surged following Brazil’s mining giant Vale SA revising down iron ore and pellets sales outlook.
The most-traded iron ore futures, for January delivery, rose as much as 3.2 percent to 612 yuan in morning trade. – Reuters