* Steel boosted by China's mega-railway spending plan
* Rebar recovers from six-week low hit in the previous
* Big iron ore stocks hurt sentiment
BEIJING, Jan 5 Chinese iron ore and steel rebar
prices jumped on Thursday, with iron ore snapping a three-day
losing streak, pulled higher by base metals amid renewed hopes
that government spending will spur demand from construction and
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 settled up 2 percent at 2,953
yuan ($429.20) per tonne. It hit a six-week low on Wednesday.
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on outdated capacity in a bid to curb excess output.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using outdated equipment.
Iron ore on the Dalian Commodity Exchange finished
up 1.8 percent at 548.5 yuan a tonne.
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 hundreds of factories including steel mills to scale
down production or close completely.
($1 = 6.8802 Chinese yuan)
(Reporting by Josephine Mason; Editing by Kenneth Maxwell and