Chinese steel and iron ore futures jumped on Monday after a week-long Lunar New Year break, as hopes of economic stimulus grew after the state planner called for faster infrastructure construction.
The National Development and Reform Commission said over the weekend that authorities should be preemptive due to relatively big uncertainties in the first quarter, and to appropriately bring forward infrastructure investment, according to the state-run Xinhua news agency.
The most-active construction-used steel rebar contract on the Shanghai Futures Exchange, for May delivery, jumped as much as 2.4% before closing up 1.7% at 4,847 yuan ($762.42) a tonne, its highest since Oct. 21.
Hot rolled coils, used in the manufacturing sector, gained 2% to 4,980 yuan a tonne.
Stainless steel futures on the Shanghai bourse, for March delivery, climbed 2.8% to 17,875 yuan a tonne. They were up 4.2% earlier in the session.
Boosted by steel prices, benchmark iron ore futures on the Dalian Commodity Exchange increased 2.5% to 817 yuan a tonne, the highest close since end-August.
However, industry is watching out government moves on the sector after the state planner warned ahead of holidays that there was speculation in iron ore trading and it would take measures to stabilise prices.
Other steelmaking raw materials on the Dalian exchange were mixed, with coking coal rising 2% to 2,312 yuan per tonne while coke futures were down 0.8% to 2,990 yuan a tonne.
China's industry ministry said in a high-quality steel development guideline that the country aims to boost domestic iron ore output and increase use of steel scrap by 2025.
Source: Reuters
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