September 1, 2017 / 2:36 AM / a year ago

Chinese steel, iron ore futures rise on industrial outlook

SYDNEY, Sept 1 (Reuters) - Chinese rebar steel futures rose more than 2 percent on Friday, lifted by further signs of strength in Chinese industrial activity.

China’s manufacturing activity expanded at the fastest pace in six months in August, buoyed by a surge in export orders and higher prices, according to the private Caixin manufacturing purchasing managers index.

A day earlier, the official Purchasing Managers’ Index (PMI) released rose to 51.7 in August from 51.4 the previous month.

The positive data also lifted Chinese iron ore futures and was seen supporting U.S. dollar-denominated iron ore prices.

The most active rebar on the Shanghai Futures Exchange jumped 2.8 percent to 3,959 yuan ($601) a tonne by 0215 GMT. The move took the construction steel product to its highest price in a week.

Iron ore on the Dalian Commodity Exchange was up 2.5 percent.

Benefiting from fatter margins, Chinese steel producers have boosted steel production and restocked on raw materials, prompting investment bank Macquarie to upgrade its iron ore price forecast for the third quarter to $73 from $50.

Iron ore for delivery to China’s Qingdao port .IO62-CNO=MB stood at $78.91 a tonne, up 3.3 percent from the previous quote, according to Metal Bulletin. ($1 = 6.5829 Chinese yuan renminbi) (Reporting by James Regan; Editing by Richard Pullin)

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