🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

Shanghai rebar ekes out gains after nine-day slide, but outlook weak

Published 07/06/2017, 12:47 pm
Updated 07/06/2017, 12:50 pm
© Reuters.  Shanghai rebar ekes out gains after nine-day slide, but outlook weak

* China steel market remains "very, very slow" - CRU

* Dalian iron ore slips amid ample supply

By Manolo Serapio Jr

MANILA, June 7 (Reuters) - Chinese steel futures edged up on Wednesday after a nine-day fall, although the outlook for demand in the world's top consumer remained weak.

The price recovery, which follows an 11 percent decline since May 22, may be technical in nature, said Richard Lu, analyst at CRU consultancy.

"We think the current market remains very, very slow. The recent price slump should make buyers hesitant to buy because the price can go down again so they just want to slow down purchases," he said.

The most-active rebar on the Shanghai Futures Exchange SRBcv1 was up 0.6 percent at 2,959 yuan ($436) a tonne by 0215 GMT. The construction steel product touched a one-month low on Tuesday.

Construction activity usually eases in China during summer, curbing steel consumption.

On the Dalian Commodity Exchange DCIOcv1 , the most-traded iron ore contract DCIOcv1 slipped 0.2 percent to 431 yuan per tonne.

Supply of the steelmaking raw material remains high in China.

Imported iron ore at the country's ports reached 136.55 million tonnes as of June 2, only down slightly from the previous week's 136.6 million tonnes which was the most for the stockpiles since 2004, based on data compiled by SteelHome consultancy. SH-TOT-IRONINV

Spot iron ore prices regained some lost ground on Tuesday after falling to near eight-month lows in the previous day.

Iron ore for delivery to China's Qingdao port .IO62-CNO=MB rose 0.2 percent to $56.03 a tonne, according to Metal Bulletin.

($1 = 6.7951 Chinese yuan)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.