Bloomberg reported that steel reinforcement bar futures posted the biggest weekly climb in more than two years on expectations a strengthening Chinese economy will boost demand.
Rebar for May delivery rose 1.7% to close at CNY 3,656 (USD 587) a metric tonne on the Shanghai Futures Exchange. Futures climbed 4.6% this week, the biggest such gain since the week ended October 15th 2010
Shenyin Wanguo Futures Co said in a report that there is growing "enthusiasm" for urbanization projects in China's southwest after the country's leaders signaled there may be more pro-growth policies.
She said that "If you look at daily production right now, it's higher than last year. We find steel companies are rather firm on their prices as they anticipate stronger demand."
Production nationwide has averaged about 1.9 million tons per day since October, compared with 1.6 million tons last year, Yu said, citing her analysis. Steelmakers enjoy some profits now and expect continued improvement.