BEIJING/MANILA- Chinese steel rebar futures surged more than 5 percent on Wednesday to their highest level in about a decade, fuelled by concerns of production cut as the country plans to take more steps to protect the environment.
Besides the industry ministry’s pledge to cut crude steel output this year, heavy pollution alerts issued in Hebei province and the upcoming annual parliament meeting will also affect steel products output in short term, SinoSteel Futures said in a note.
Top steel making Tangshan city recently urged to shut down seven blast furnaces by March 10, which might likely lower pig iron output by 5,000 tons a day, according to GF Futures.
The most actively traded rebar contract on the Shanghai Futures Exchange, for May delivery, rose 5.0 percent to 4,894 yuan ($757.13) per ton, after rising 5.6 percent to its highest since August 2011 earlier in the session.
Hot rolled coil futures, used in cars and home appliances, jumped 4.3 percent to hit a record high of 5,067 yuan. – Reuters