Chinese steel futures recover while worries over sustainability remain

by David Fleschen

Chinese iron ore and steel prices recovered on Thursday after easing on the first trading day of the year, but doubts remain over the sustainability of such gains amid concerns over growth in the world’s second-largest economy, as the news agency Reuters reports.

The rebound followed news that China’s state planner has approved inter-city railway projects in the eastern provinces of Jiangsu and Anhui, with a combined total investment value of $33.7 billion.

The most-active rebar contract on the Shanghai Futures Exchange ended the session up nearly 2 percent at 3,455 yuan ($502.48) a tonne. Hot rolled coil climbed 1.3 percent to 3,350 yuan.

Source: Reuters, photo: fotoalia

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