STEEL futures in China climbed to a three-week high yesterday as data showed exports of the building material by the world’s top producer rebounded in May.

    It stretched gains in Shanghai rebar to a fourth session in a row, also spurred by expectations of tighter Chinese supply in the short term following another round of production curbs in the top steelmaking city of Tangshan next week to improve air quality.

    Chinese steel exports rose 3.7 percent to 9.42 million tons in May from a month ago as mills continued to ship more abroad despite a rising trade spat.

    Monthly exports have remained above 9 million tons this year except in February.

    The most-traded rebar on the Shanghai Futures Exchange closed up 1.2 percent at 2,099 yuan (US$320) a ton, after rising as far as 2,115 yuan, the highest since May 18.

    China’s steel exports to Asia, its biggest market, remain strong given the competitive advantage of Chinese producers, said Daniel Hynes, commodity strategist at ANZ. “We expect to see exports hold up relatively well this year, maybe above 100 million tons,” he said.

    China’s steel exports reached a record 112 million tons in 2015.

    South Korea is the top market for Chinese steel, with shipments reaching 13.5 million tons last year, compared with 2.35 million tons to the United States, according to data compiled by MEPS consultancy.

    Iron ore futures on the Dalian Commodity Exchange slipped, but not far below two-week highs as some Chinese steel producers replenished inventories of the raw material ahead of public holidays today and Friday.

    The most-traded iron ore on the Dalian exchange closed 0.5 percent lower at 366.50 yuan a ton, matching Tuesday’s two-week top. (SD-Agencies)