STEEL NEWS

Steel futures are rising in China, but uncertain prospects

According to Reuters, on Thursday, April 25, Chinese steel futures rose after a three-day decline, but the market remained cautious about steel demand amid slowing down the process of reducing stocks by traders. 

Armature futures in Shanghai rose 0.6% to 3,754 yuan ($ 558.16) per ton. 

“Steel inventories are still falling, but at a slower pace, indicating a nearing low season for steel consumption,” analysts at Huatai Futures say. 

Hot roll prices rose 0.3% to 3,690 yuan. 

Baoshan Iron and Steel Co (Baosteel), China's largest steel producer, said Thursday that it expects revenue to decline in 2019 due to a sluggish auto industry.

Prices for the coking coal contract on the Dalian Mercantile Exchange rose 0.3% to 1346.5 yuan, while coke rose 0.6% to 2050 yuan. 

The most active iron ore futures for September delivery remained virtually unchanged. 

Meanwhile, US President D. Trump said Wednesday that ongoing trade negotiations between Washington and Beijing are going well, which has also helped improve market sentiment. 

The next round of talks is scheduled to begin on April 30 in Beijing, and then further discussions will follow in May 8 in Washington.