Updates
with closing prices
BEIJING, April 27 (Reuters) - Chinese
iron ore and steel futures rose on Wednesday after falling for two consecutive
days, as concerns stoked by the COVID-19 outbreak eased.
Benchmark
iron ore futures on the Dalian Commodity Exchange had plunged more than 8% this
week until Tuesday, while construction-used rebar on the Shanghai Futures
Exchange lost some 3% on fears over sluggish demand outlook due to recurring
COVID outbreaks in China.
"The
panic sentiment had been released and the ferrous sector is returning to
fundamentals," Galaxy Futures wrote in a note, adding that spot market
transactions for iron ore were recovering and there's was still restocking
downstream demand.
The
most-active iron ore contract for September delivery DCIOcv1 jumped
as much as 3.5% to 834 yuan ($127.19) a tonne in the morning session. They
ended up 2.6% at 827 yuan.
Spot prices of iron ore with 62% iron content for delivery to China SH-CCN-IRNOR62 rose
50 cents to $139.5 a tonne on Tuesday, according to SteelHome consultancy.
Steel
prices also regained footing after Chinese President Xi Jinping vowed to step
up infrastructure construction to boost domestic demand and drive economic
growth.
Steel
rebar SRBcv1 for
October delivery gained 1% to 4,864 yuan per tonne. Hot-rolled coils SHHCcv1,
used in the manufacturing sector, advanced 0.8% to 4,948 yuan a tonne.
Shanghai
stainless steel futures SHSScv1 for June delivery dipped 0.2% to 816 yuan per
tonne.
Other
steelmaking ingredients retreated from gains in morning session, with coking
coal DJMcv1 falling
1.4% to 2,839 yuan a tonne at close and coke prices DCJcv1 slipped
1.9% to 3,551 yuan per tonne.
($1 =
6.5571 Chinese yuan)
(Reporting
by Min Zhang in Beijing and Enrico Dela Cruz in Manila; Editing by Vinay
Dwivedi)
((min.zhang@thomsonreuters.com; (8610) 5669-2105;))
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