Chinese ferrous futures jump as strong loan growth boosts demand hopes

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BEIJING, February 11 (Reuters)Futures in Chinese steel and ferrous commodities surged on Friday and were forecast for weekly gains as record new bank lending and stimulus fueled hopes of better demand.

New Chinese bank lending more than tripled in January from the previous month to a record high, while growth in total social finance outstanding accelerated to a six-month high as authorities seek to support the slowdown in economic growth.

“Better than expected social finance on the other hand confirms that infrastructure construction is accelerating,” Galaxy Futures analysts said in a note. “The catch is that the real estate market hasn’t recovered yet.”

Steel rebar used for construction on the Shanghai Futures Exchange SRBcv1, for May delivery, rose 1.2% to 4,966 yuan ($780.81) a ton, as of 0312 GMT. The contract was set for a weekly gain of 2.8%.

Hot Rolled Coil Futures SHHCcv1 rose 1.1% to 5,083 yuan per ton and stainless steel prices SHSScv1 rose 0.6% to 18,410 yuan per ton.

Baoshan iron and steel 600019.SSChina’s largest listed steel producer raised its March delivery futures prices for hot-rolled and cold-rolled products by 350 yuan and 300 yuan per ton, respectively.

The prices of steel ingredients on the Dalian Commodity Exchange also increased.

Iron Ore Benchmark Futures Contracts DCIocv1 jumped 3.4% to 830 yuan a ton, followed by a $6 jump in spot 62% iron ore SH-CCN-IRNOR62 at $152.5 a ton on Thursday, according to consultancy SteelHome.

Dalian Coking Coal Futures DJMcv1 jumped 3.6% to 2,400 yuan per ton and coke prices DCJcv1 jumped 4.8% to 3,169 yuan per ton.

($1 = 6.3601 Chinese Yuan)

(Reporting by Min Zhang in Beijing and Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu)

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