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China Steel Futures Rise 2.9% to CNY3,564/ton

14 Mar 2017 4:22 am
 
   By Biman Mukherji 
 

China's iron-ore and steel futures reversed a streak of sell-off to jump up sharply on Tuesday amid renewed optimism about the country's economic growth.

Dalian iron-ore futures were up 3.6% to CNY658 a ton, while Shanghai steel futures rose 2.9% to CNY3,564/ton.

The bounce in both the commodities came as investors were enthused after Chinese officials expressed confidence that the economic growth would either meet or exceed a target of 6.5% set for 2017.

Industrial production in China expanded 6.3% in the first two months of 2017 from a year earlier, accelerating from 6.0% growth in December, data from the National Bureau of Statistics showed Tuesday.

Month-on-month, industrial production increased 0.6% in February, compared with a 0.46% rise in December.

China's January-February crude steel output was up 5.8% on year at 128.77 million tons.

Last week, investors had sold off steel and iron-ore futures amid concerns about whether industrial demand would be able to absorb growing stockpiles of iron-ore and steel. Expectations that housing demand could cool off substantially by the second half of the year may still limit the upside potential in China's volatile commodity markets, where large price fluctuations often occur.

Steel and iron-ore futures had posted some of their strongest gains since the Chinese Lunar New Year, before stumbling in the past one week or so.
 

Write to Biman Mukherji at biman.mukherji@dowjones.com
 

(END) Dow Jones Newswires

March 14, 2017 00:22 ET (04:22 GMT)

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