January 22, 2018 / 8:33 AM / 3 months ago

UPDATE 1-Chinese steel futures extend gains on restocking

* Steel and raw materials prices rise

* Traders restock ahead of Lunar New Year holiday (Updates prices)

SHANGHAI, Jan 22 (Reuters) - Chinese steel futures rose for a fifth session on Monday as some traders were restocking ahead of the Lunar New Year holiday, helping drive up prices for raw materials.

The most active rebar on the Shanghai Futures Exchange ended 1.1 percent higher at 3,927 yuan ($613.69) a tonne.

“Steel consumption remains weak during winter, but some traders were restocking ahead of the Lunar New Year holiday, and the market is watching out for the extent to which demand will recover after the holiday,” said an analyst with a small-sized fund in Shanghai, declining to be named as he was not authorised to speak to media.

“The environmental crackdown will remain an important factor on supplies this year.”

China has for the first time imposed mandated output curbs at steel mills, coke plants and other industrial producers in 28 cities between mid-November and mid-March to fight pollution. The curbs are extended to other regions when smog worsens.

Iron ore on the Dalian Commodity Exchange closed 0.65 percent higher at 540.5 yuan a tonne.

Coke ended up 1.5 percent at 1,996.5 yuan a tonne and coking coal swung to losses, down 0.55 percent to 1,271.5 yuan a tonne.

Iron ore for delivery to China’s Qingdao port .IO62-CNO=MB advanced 2.5 percent to $76.75 a tonne, according to Metal Bulletin.

$1 = 6.4055 Chinese yuan Reporting by Ruby Lian and Josephine Mason; Editing by Joseph Radford and Sherry Jacob-Phillips

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