Despite lacklustre downstream demand, daily crude steel output in China increased 29,600 tonnes, or 1%, over the first 10 days of April from late March to 3.08 million tonnes on average, the highest since mid-June 2021, based on Mysteel consultancy's survey of 247 mills. (Reporting by Enrico Dela Cruz in Manila; Editing by Sonia Cheema)
By Enrico Dela Cruz
April 12 (Reuters) - Dalian iron ore futures edged up on
Wednesday as China's robust loan growth in the first quarter
bolstered hopes for an economic rebound for the world's biggest
steel producer, though traders remained wary of growth and
regulatory risks.
The most-traded September iron ore on China's Dalian
Commodity Exchange ended morning trade 0.8% higher at
792.50 yuan ($115.06) a tonne.
China's new bank lending hit an all-time high in the first
quarter, while broad credit growth quickened as the central bank
kept up policy support for the economy after the lifting of
stringent COVID-19 curbs.
Overall sentiment, however, remained guarded.
On the Singapore Exchange, the steelmaking ingredient's
benchmark May contract was down 1.3% at $118.15 a
tonne, as of 0416 GMT.
"How fast could these loans turn into investment activity?
This should be clearer if the fixed asset investment grows
faster than February's rate and faster than the pre-COVID growth
rate," said Iris Pang, chief economist at ING Greater China.
China's first-quarter GDP and economic activity data, due on
April 18, should provide a clearer picture, she said.
Iron ore prices had climbed on Tuesday on worries that a
cyclone heading toward top supplier Australia could disrupt
shipments. Sinosteel Futures analysts, however, said the market
seemed to have overreacted to it.
Traders were also mindful of regulatory risks as Chinese
authorities have repeatedly warned against excessive iron ore
price speculation.
Dalian coking coal and coke rose 0.4% and
0.6%, respectively.
On the Shanghai Futures Exchange, rebar gained
0.3%, hot-rolled coil added 0.2%, and stainless steel climbed 3.6%, while wire rod lost 0.9%
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