Steel futures hit 7-week high

    79

    Futures prices for rebar and hot-rolled coil in China jumped to their highest in seven weeks on Monday amid improving steel margins in the world’s top producer of the construction and manufacturing material.

    Extending gains into a fifth straight session, Shanghai Futures Exchange’s most-traded rebar contract, with January 2020 expiry, gained as much as 1.2 percent to 3,576 yuan ($511.29) a ton, its strongest since September 30.

    Hot-rolled coil, steel used in cars and home appliances, edged 0.4 percent higher to 3,492 yuan a ton, hovering around a seven-week high.

    “Steel margins remain on the upward trend and as it stands we are back to early May levels,” said Hui Heng Tan, research analyst at commodity broker Marex Spectron.

    Chinese steel margins have improved in the wake of declines in prices of feedstocks such as iron ore and coke. Spot prices of benchmark 62 percent iron ore slumped to their lowest in more than nine months last week below $80 a ton amid tepid demand and easing concerns over supply. – Reuters