Chinese steel prices hit another multi-year high [IMG] DAVID...

Chinese steel prices hit another multi-year high


DAVID SCUTT
AUG 1, 2018, 7:48 AM

• FACEBOOK
• TWITTER
• REDDIT
• LINKEDIN
• EMAIL

https://edge.alluremedia.com.au/uploads/*/2017/05/GettyImages-625668024.jpgKevin Frayer/Getty ImagesRebar futures — up 10% in July.

• Chinese rebar futures hit a five-year high on Tuesday. However, iron ore futures fell fractionally.
• The price divergence may reflect temporary steel production curbs implemented in many parts of China, limiting steel supply and iron ore demand.
• Spot iron ore pricing was unavailable.

Chinese iron ore futures remain unusually quiet, ignoring strength in Chinese steel prices and the release of major Chinese economic data on Tuesday.
According to data from the Dalian Commodities Exchange, the September 2018 iron ore contract finished Tuesday’s day session at 488 yuan, down marginally from Monday’s night session close of 489 yuan.
In July, the contract gained 3.3%.
The modest decline came despite strength in Chinese rebar futures which continued to rally on the back of production curbs, low inventory levels and strong demand.
The October 2018 contract finished trade at 4,171 yuan, having risen to 4,184 yuan earlier in the session, the highest level since February 2013. It closed Monday’s night session at 4,128 yuan.
Over July, it added close to 10%.