Both higher and lower grade ores also rallied during the session.
Ore with 65% Fe content soared 2.5% to $83.10 a tonne, outpacing a 1.3% lift in the price of 58% fines which settled at $37.99 a tonne.
The moves in spot markets followed a wild session in Chinese commodity futures on Monday with many steel and bulk commodity contracts screeching higher in early trade before reversing hard in the latter parts of the session.
The May 2018 rebar contract in Shanghai closed up 0.6% at 3,344 yuan a tonne, giving up an earlier gain of as much as 4.7%.
Analysts put the rebound down to a combination of speculation over strengthening demand for steel product from China’s construction sector and news of further steel production curbs in the Chinese province of Hebei.
“I believe demand will pick up from the first half of April as the construction season gets underway so consumption of steel products will increase,” a Beijing-based trader told
Reuters.
News that steel mills in Handan, a northern city in China’s Hebei province, have been ordered to cut production levels by around 25% from April 1 to mid-November helped to support not only rebar contracts but also those for iron ore, coking coal and coke on Monday.
Read more at
https://www.*.com.au/iron-ore-reversal-china-steel-production-cuts-2018-4#fSpKIcRw9PGVZ2MQ.99
China is restricting steel production across the country as the northern hemisphere comes out the coldest winter for many years and manufacturing picks up I cant see how there can be enough steel to go around -most economies going strongly in low interest rate enviroment
MY PREDICTION STEEL WILL CONTINUE TO SORE - TAKING COMMODITIES WITH IT !!!!!!!!!!
