July 31, 2019 / 2:19 AM / 18 days ago

Shanghai steel futures rise on talks of extended Tangshan output curbs

MANILA, July 31 (Reuters) - Steel futures in China rose on Wednesday, rebounding from two days of losses, amid market talk that the nation’s top steelmaking city of Tangshan has drafted a plan to extend anti-pollution production curbs.

Chinese iron ore futures climbed for a fifth session and were set to post their eighth monthly gain, as market participants bet that supply constraints will linger beyond 2019 and keep spot prices high.

The most-active construction steel rebar on the Shanghai Futures Exchange, for delivery in October, jumped as much as 1.0% to 3,932 yuan a tonne.

Hot-rolled steel, used in cars and home appliances, rallied as much as 1.1% to 3,839 yuan a tonne.

Tangshan was supposed to lift stepped-up anti-smog measures by Thursday, however market talk suggested the measures could be extended, a trader and an analyst said.

FUNDAMENTALS

* The most-traded iron ore contract on the Dalian Commodity Exchange, with January 2020 expiry, gained as much as 2.4% to 782 yuan ($113.61) a tonne, a level last seen on July 19.

* Benchmark spot 62% iron ore for delivery to China SH-CCN-IRNOR62 was steady at $118 a tonne on Tuesday, based on data from SteelHome consultancy, near its $126.50 peak hit on July 3, which is the highest level since January 2014.

* Imported iron ore stockpiles at China’s ports climbed for a second straight week, rebounding to 119.25 million tonnes as of July 26 SH-TOT-IRONINV, SteelHome data showed. The inventory had shrunk earlier this month to the lowest since January 2017.

* Other steelmaking inputs were trading mixed, with Dalian coking coal up as much as 0.7% to 1,404 yuan a tonne, while coke slipped 1.2% to 2,138.50 yuan.

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MARKETS NEWS

* Asian shares weakened in early trade on Wednesday, rattled by fresh trade war concerns following threats from President Donald Trump to Beijing, while increasing worries about a no-deal Brexit kept the pound under pressure.

($1 = 6.8833 yuan)

Reporting by Enrico dela Cruz; editing by Richard Pullin

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