STEEL NEWS

Steel prices in China rise amid optimistic production data

China steel futures hit a weekly high on Wednesday, Dec. 15, after data showed that industrial production in the PRC grew faster-than-expected in November, but continued declines in steel production led to a decline in iron ore production in China, Reuters reported. Dalian.

The most active May steel rebar contract on the Shanghai Futures Exchange ended with a 1.1% increase at 4,441 yuan ($ 697.82) a tonne after hitting 4,468 yuan earlier in the session, the highest level since December 8.

Hot rolled coil, which is steel used in car bodies and household appliances, rose 1.5% to RMB 4,609 per tonne.

Official data showed industrial production rose 3.8% in November from a year earlier, accelerating from 3.5% in October, official data showed, boosted by rising energy production and modest declines in raw material prices.

But crude steel production fell in November for the sixth straight month, down 22% from a year earlier, as production restrictions to tackle pollution persisted and construction demand remained flat.

The Dalian Commodity Exchange's best-selling contract for iron ore, a key ingredient in steelmaking, fell 2% to 649 yuan a tonne.

On the Singapore Exchange, the most active January contract remained virtually unchanged at $ 112.90 per tonne by 07.06 GMT after rising 1.6% at the start of the day.

ING analysts in their 2022 forecast for commodities expect iron ore prices to drop to $ 100 per tonne in 2022, "with the main upside risks still being potential supply chain disruptions in light of the Omicron option."

The spot price of iron ore in China was $ 115.50 a tonne on Tuesday, the highest since October 28, but it is only half of the record peak reached in May, according to consulting firm SteelHome.

Shanghai stainless steel rose 1.2%.

Dalian coking coal fell 0.1%, while coke fell 0.6%.