👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

UPDATE 1-China steel futures rise on weaker dollar, stronger raw materials

Published 25/01/2018, 06:08 pm
© Reuters.  UPDATE 1-China steel futures rise on weaker dollar, stronger raw materials

* Coking coal, coke rise as snow disrupts transportation

* Steel demand still showing winter-month weakness (Updates close prices)

SHANGHAI, Jan 25 (Reuters) - Chinese steel futures rose on Thursday, lifted by a weaker dollar and gains in coking coal and coke futures.

The most active rebar contract on the Shanghai Futures Exchange SRBcv1 rose 1.1 percent at 3,966 yuan a tonne by the close.

The dollar was holding near three-year lows against its peers after caving on comments by U.S. Treasury secretary Steven Mnuchin indicating that he welcomed a weaker currency. USD/

Steel prices were also supported by gains in coking coal DJMcv1 and coke futures DCJcv1 on the Dalian Commodity Exchange as heavy snows in China's northern regions disrupted transportation networks.

"Coal and coke rose because of the snowy weather," said Fu Deling, an analyst with Xinhu Futures in Hangzhou.

"Steel mills are not likely to resume production until late March, while buying will start one month earlier, so I am positive on prices after the Lunar New Year holiday," Fu added.

China's one-week Lunar New Year holiday starts on Feb. 15. Typically steel demand from end-users is weak until the holiday break, but some traders start restocking beforehand in anticipation of demand recovery afterwards.

Steel demand usually tapers off in winter as construction activities - a primary consumer of the metal - slow down.

Coking coal DJMcv1 gained 2.7 percent to 1,319 yuan a tonne and coke DCJcv1 jumped 3.7 percent to 2,063.5 yuan a tonne by GMT 0255.

Dalian iron ore futures DCIOcv1 rose 1.5 percent to 529.5 yuan a tonne.

Iron ore for delivery to China .IO62-CNO=MB rose 24 cents to $74.53 a tonne on Wednesday, according to Metal Bulletin.

($1 = 6.3340 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.