Chinese steel futures increased on Tuesday, supported by government initiatives to ease financial distress in the nation's troubled real estate sector, but iron ore prices decreased due to ongoing worries about declining demand for the steelmaking component.
The COVID-19 lockdowns have already had a significant impact on the economy, so Chinese regulators have stepped up their efforts to encourage lenders to extend loans to qualified projects. By doing this, they are attempting to reduce the uncertainty that could strain the economy.
Construction steel rebar on the Shanghai Futures Exchange ended daytime trade 1.7pct higher at 3,774 yuan (USD 559.45) a ton, well off session-high 3,872 yuan (USD 573.9) but extending a rebound from a 19-month low on Friday.
Hot-rolled coil climbed 1.4pct to 3,755 yuan (USD 556.6) a ton, bouncing off a 20-month low. Stainless steel edged up 0.1pct.
The materials and information on this article have been prepared or assembled by Viet Nam Steel and are intended for informational purposes only.