Chinese steel and iron ore futures are soaring again on Monday, adding to the substantial gains achieved last week.
Here’s the scoreboard as at 12.50pm AEST.
SHFE Rebar ¥3,545 , 2.01%
DCE Iron Ore ¥478.50 , 2.46%
Both rebar and iron ore futures sit at one-month highs, rebounding strongly after tumbling on Friday.
The price action in futures has been wild in recent days, indicating that speculative activity has increased.
Today’s rally coincides with news that Chinese rebar and iron ore inventories continued to decline last week, adding to optimism over the outlook for Chinese steel demand and its raw ingredients.
According to Thomson Reuters, citing data from Mysteel Consultancy, rebar inventories held by Chinese traders fell to 8.252 million tonnes, well below the 8.68 million tonne level reported a week earlier.
Chinese iron ore port inventories also declined, falling marginally to 160.13 million tonnes.
The data may explain the sizeable reversal in futures markets seen today.
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