It has gained more than 3% so far this year and is on track for a second consecutive weekly rise. On the Singapore Exchange, the steelmaking ingredient's benchmark March contract climbed 1.5% to $126.40 a tonne, its highest since Feb. 2. Helping lift prices, China's new home prices rose in January for the first time in a year, official data showed on Thursday, as the end of the country's zero-COVID regime, favourable property policies and market expectations for more stimulus measures boosted demand. With top steel producer China holding its annual National People's Congress session in early March, hopes are high that Beijing will announce more economic stimulus measures. Adding to the buoyant mood, China's top leaders declared a "decisive victory" over COVID-19. Rebar on the Shanghai Futures Exchange rose 1.4%, hot-rolled coil gained 1.2%, wire rod added 0.4%, and stainless steel climbed 1.2%.
Coking coal and coke on the Dalian
exchange rose 2.1% and 2.7%, respectively.
Still, the outlook for China's struggling real estate
industry remains guarded.
"Whilst the slight uptick (in new home prices) represents a
major turning point, a rapid improvement is unexpected given the
market remains flush with property from decades of overbuilding
and investment demand is set to stay subdued," SP Angel analysts
said in a note.
(Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu
Sahu)
