MANILA, Sept 30 (Reuters) – China’s steel and iron ore futures jumped in early trade on Monday, with construction material rebar up more than 4%, after the country’s central bank vowed to step up efforts to lift a slowing economy.
While spot markets have been generally quiet since last week ahead of a long holiday in China, sentiment got a further boost from a private business survey showing China’s factory activity expanded at the fastest pace in 19 months in September.
The most-traded rebar contract on the Shanghai Futures Exchange, with January 2020 expiry, rose as much as 4.3% to 3,580 yuan ($502.74) a tonne. Hot-rolled steel coil, used in cars and home appliances, jumped up to 2.2% to 3,527 yuan a tonne.
The Chinese markets will be closed from Tuesday, when the nation marks the 70th anniversary of the People’s Republic, until Oct. 7. Many of the nation’s steel mills have been ordered to shut or limit operations starting last week to curb pollution ahead of the Oct. 1 celebrations in Beijing.
China will “continue to implement a prudent monetary policy and increase the strength of counter-cyclical measures”, the central bank said in a statement on Sunday.
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