China's steel futures prices moved up to nearly six weeks
high on Monday, spurred by demand hopes from China.
Traders say a resumption in construction activity in China as
well as expectations that a change in Beijing's leadership during an annual
parliamentary session in early March may lead to pro-growth measures, would
boost steel demand.
The most-traded rebar contract on the Shanghai Futures
Exchange on Monday rose by 1.4 percent to close at 4,278 yuan ($680)/MT, its
biggest single-day gain since Jan. 17.
“I believe a lot of traders and even steel mills are betting
that the market will get better, for both steel and iron ore,” said an iron ore
trader in Shanghai.
China could ease liquidity conditions further to bolster its
slowing economic growth and the country's Vice President Xi Jinping, widely
viewed as president-in-waiting, may announce policy measures supportive of
growth, the trader said.
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