BEIJING- Steel futures in China rose in Monday morning trade, extending their gains to a third session, as a surprisingly high gauge of factory activity for November boosted sentiment.
China’s official Purchasing Managers’ Index (PMI) released on Saturday pointed to an unexpected improvement in its manufacturing sector in November, as demand picked up on Beijing’s stimulus measures.
Another private business survey released on Monday also showed total new orders and factory production remained at buoyant levels last month, expanding at the quickest pace in almost three years.
The most-active January contract for hot-rolled coils, which are used in cars and home appliances, on the Shanghai Futures Exchange gained as much as 1.7 percent to 3,613 yuan ($513.29) per ton. It was up 1.6 percent at 3,610 yuan.
The construction steel rebar on the Shanghai bourse jumped 0.5 percent to 3,637 yuan a ton.
Building of infrastructure could help support steel product consumption, though demand may ebb as winter progresses, Huatai Futures said in a note on Monday. – Reuters