BEIJING- China’s steel rebar futures clocked a fifth straight weekly gain, buoyed by expectations of strong demand as steel inventories fell to a two-year low.
The most-traded steel rebar contract on the Shanghai Futures Exchange, for January 2020 delivery, closed up 0.3 percent at 3,655 yuan ($519.40) per ton, recovering from morning losses. It gained 3.1 percent this week.
Hot-rolled coil on the Shanghai exchange, for January delivery, rose 0.5 percent to 3,531 yuan per ton.
Steel inventories in China fell to 7.8 million tons in the week to Nov. 21, the lowest in two years, according to data compiled by Mysteel consultancy.
“The consumption for steel products has been good,” said Zhao Yu, an analyst with Huatai Futures, while explaining recent drop in steel stocks.
China has largely leaned on a prescription of higher infrastructure spending, tax cuts and frequent liquidity injections to cushion the current slowdown.
Beijing has pledged to lower the minimum capital ratio requirement for some infrastructure investment projects earlier this month. – Reuters