STEEL NEWS

Chinese steel futures post weekly gains on demand hopes

Chinese steel futures lost more than a 2% gain on Friday, Feb. 11, to close almost flat but posted a weekly gain on hopes that stimulus measures will boost demand, Reuters reported.

The country's new bank loans more than tripled in January from the previous month to a record high, while growth in outstanding overall social financing accelerated to a six-month high as authorities seek to prop up the economic slowdown.

“Better than expected, social financing confirms, on the other hand, the acceleration of infrastructure construction,” Galaxy Futures analysts say. "The fly in the ointment is that the real estate market has not yet recovered."

Steel rebar on the Shanghai Futures Exchange for delivery in May cost 4,905 yuan ($771.08) per ton. The contract rose by as much as 2.6% at the start of the session. For the week, he added 1.6%.

Hot rolled coil futures rose 0.1% to 5,033 yuan ($791.20) a tonne, up 1.8% weekly.

Shanghai stainless steel futures for March delivery remained unchanged at 18,300 yuan ($2,876.82) a tonne.

Prices for steelmaking ingredients also rose on the Dalian Commodity Exchange.

Dalian coking coal futures jumped 1.5% to 2,352 yuan a ton, while coke prices rose 2.4% to 3,095 yuan a ton.

Underlying iron ore futures rose 5.9% to 850 yuan a ton before slipping to 805 yuan a ton in the afternoon session. They fell 2.9% last week.