Market and product

Chinese iron ore futures picked up in early trade on Tuesday, rising more than 1% on demand hopes after the world’s second-biggest economy reported an unexpected growth in its factory activities in March.

China’s official Purchasing Managers’ Index (PMI) jumped to 52 this month from a record low in February, beating analysts’ expectations of 45.0, the National Bureau of Statistics said.

That helped the Dalian Commodity Exchange’s most-traded May iron ore futures contract gain as much as 1.2% to 653 yuan ($92.08) per tonne.

Steel futures on the Shanghai Futures Exchange also clawed back from Monday’s loss, with construction rebar edging down 0.03% to 3,410 yuan per tonne while hot-rolled coil rose 0.5% to 3,273 yuan per tonne, as of 0220 GMT.

But the statistics bureau warned the pick-up in PMI this month does not suggest the economy has returned to normal.

“The companies’ production resumption had not yet returned to the level before the coronavirus,” the statistics bureau said in a statement along with the data, adding that the spreading epidemic overseas had brought new challenges to the country’s economy.

FUNDAMENTALS

* Spot prices of the benchmark 62% iron-content ore, as tracked by SteelHome consultancy, fell for the third straight session to $84.5 per tonne on Monday.

* Other steelmaking ingredients were mixed, with Dalian coking coal, for May delivery, gaining 0.8% to 1,256 yuan per tonne, while Dalian coke inched down 0.1% to 1,774 yuan per tonne.

* Shanghai stainless steel futures, for June delivery, rose 0.3% to 11,980 yuan per tonne.

* China’s Premier Li Keqiang said on Monday the country would step up prevention and control of asymptomatic coronavirus cases and strengthen screening, quarantine and treatment.

* Russian steelmaker Severstal said on Monday that one of its employees was confirmed to have the coronavirus. - Reuters-