* Steel boosted by China's mega-railway spending plan
* Rebar recovers from 6-week low hit on Wednesday
* Big iron ore stocks hurt sentiment
BEIJING, Jan 5 Chinese iron ore and steel rebar
prices jumped on Thursday, with iron ore on track for its
biggest daily gain in a month, pulled higher by base metals amid
renewed hopes that government spending will spur demand from
construction and infrastructure.
Non-ferrous metals from copper to aluminium rose after China
unveiled late on Wednesday a $115 billion railway construction
plan that would require massive amounts of wiring and rail
The most-active rebar contract for May delivery on the
Shanghai Futures Exchange was up 2.5 percent at 2,963
yuan ($430.81) per tonne at 0626 GMT. It hit six-week lows on
Traders continue to focus on Beijing's efforts to crack down
on outdated capacity in a bid to curb excess output. On Tuesday,
the government said it would impose higher power prices on mills
using outdated equipment.
Snapping a three-day losing streak, iron ore on the Dalian
Commodity Exchange was up 2.7 percent at 553.5 yuan a
Domestic stocks CUS-STKTOT-IORE remain at 2 1/2-year
highs, rising by 90,000 tonnes last week to almost 111 million
"Given stock levels in the country, and supply coming online
over the course of 2017, we continue to hold a bearish view
towards iron ore," said Rabobank analysts.
A prolonged bout of toxic smog across the north of the
country has renewed concerns about slower manufacturing output,
forcing forcing hundreds of factories including steel mills to
scale down production or close completely.
($1 = 6.8778 Chinese yuan renminbi)
(Reporting by Josephine Mason; Editing by Kenneth Maxwell)