November 5, 2018 / 7:28 AM / 3 months ago

UPDATE 1-China rebar snaps 5-day slide amid firm demand, economic push

* Rebar futures bounce off 3-week low, coke up 3.3 pct

* China’s Xi vows lower import tariffs as trade fair opens

* China’s services sector growth slowest in 13 months (Updates prices)

By Manolo Serapio Jr

MANILA, Nov 5 (Reuters) - Shanghai rebar steel futures recovered from a three-week low to finish higher on Monday amid firm demand in top consumer China and efforts by the government to reinvigorate the world’s No. 2 economy following a slew of downbeat data.

Chinese President Xi Jinping vowed to lower import tariffs and continue to broaden market access, raising his estimate for the country’s imports in coming years at the opening of a symbolic week-long trade expo in Shanghai.

The most-traded January rebar on the Shanghai Futures Exchange closed up 0.5 percent at 4,072 yuan a tonne, following a five-day slide. The construction steel product earlier fell more than 1 percent to 4,002 yuan, its weakest since Oct. 11.

Hot rolled coil futures climbed 1.9 percent to 3,773 yuan per tonne.

Economic risks are mounting in China with a private survey on Monday showing its services sector posted its slowest growth in 13 months in October.

The downbeat services number followed a private survey last week that showed China’s manufacturing sector barely grew last month after stalling in September.

“There’s a lot of uncertainty in the Chinese economy,” said a Shanghai-based trader. “But it’s good that the Chinese government is trying to inject some energy into the economy like the import expo in Shanghai.”

The Nov. 5-10 China International Import Expo brings thousands of foreign companies together with Chinese buyers in a bid to demonstrate the importing potential of the world’s second biggest economy even as China remains embroiled in a trade row with the United States.

Chinese steel demand also remains firm with construction work still ongoing in many cities ahead of winter, said the Shanghai trader.

Iron ore on the Dalian Commodity Exchange rose 0.9 percent to 515.50 yuan a tonne and coking coal climbed 1.6 percent to 1,384 yuan.

Coke was the outperformer among steelmaking raw materials, jumping 3.3 percent to 2,406 yuan.

$1 = 6.9061 Chinese yuan Reporting by Manolo Serapio Jr.; Editing by Richard Pullin and Subhranshu Sahu

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