MANILA, Aug 15 (Reuters) - Steel futures in China extended gains on Thursday as market participants hoped Beijing would roll out more measures to stimulate the slowing domestic economy amid fears about a global recession.
Rallying for a fourth straight day, the most-traded October 2019 contract for hot-rolled coil, used in cars and home appliances, on the Shanghai Futures Exchange ended up 0.7% to 3,722 yuan ($529.78) a tonne, its strongest finish since Aug. 2.
The construction steel rebar index was up 0.5% at 3,715 yuan a tonne, marking its third session of gains.
Shanghai steel futures managed to push higher on Wednesday despite unexpectedly weak Chinese economic data for July, including a marked slowdown in industrial output growth amid a protracted U.S.-Sino trade war.
“Investors took a glass half full approach to the weak economic data in China, with expectations of extra stimulus measures rising,” ANZ Research said in a note.
Support for steel prices is also seen intact as some Chinese steelmakers have decided to reduce their output to prop up weak prices and thus boost profit margins squeezed by high costs of raw materials.
