* Shanghai rebar climbs as much as 6.3 pct
* Dalian iron ore hits over two-week high
* Crackdown in Tangshan to last through end-May
By Manolo Serapio Jr
MANILA, May 22 Chinese steel futures jumped more
than 6 percent on Monday to their highest since March,
stretching last week's gains on concerns over limited supply as
Beijing keeps up a campaign to clamp down on polluting
Tangshan city in Hebei province, China's biggest steelmaking
region, earlier this month kicked off efforts to suspend and
fine mills that fail to meet emission standards.
The campaign began on May 9 and will run through the end of
Prices of billet, a semi-finished steel product, picked up
steam last week as independent rolling mills who make these into
finished products such as rebar, snapped up billet and the price
increase spread to other steel products.
"I think some of the rolling mills have brought forward
their purchases thinking supply may be at risk," said Richard
Lu, analyst at CRU consultancy in Beijing.
Earlier in the session, the most-active rebar on the
Shanghai Futures Exchange climbed as much as 6.3
percent to 3,385 yuan ($491) per tonne, the highest since March
20. The construction steel product closed up 4.9 percent at
But Lu said he was sceptical that price gains would be
sustained unless demand strengthens.
"We don't think these environmental inspections will have
significant impact unless the government can give a very clear
order on production cuts and not just controlling emission
"I believe a lot of these plants have already installed the
necessary facilities to limit pollution," said Lu.
As steel prices picked up pace, so did raw material iron
The most-traded iron ore on the Dalian Commodity Exchange
rose as far as 501 yuan a tonne, its loftiest since
May 4, and closed 4.2 percent higher at 494 yuan.
Iron ore for delivery to China's Qingdao port .IO62-CNO=MB
rose 1.8 percent to $62.69 a tonne on Friday, to its strongest
level since May 4, according to Metal Bulletin.
The spot benchmark climbed 2.1 percent last week, its second
such increase in nine weeks.
($1 = 6.8906 Chinese yuan)
(Reporting by Manolo Serapio Jr.; Editing by Amrutha Gayathri
and Sherry Jacob-Phillips)