Manolo Serapio Jr
SINGAPORE, Nov 1 (Reuters) - Steel and iron ore futures in
China began November higher on Friday, with iron ore climbing
as much as 3.4 percent, as strong data from the top consumer
brightened the outlook for demand.
China's Purchasing Managers' Index rose to 51.4 in October
from 51.1 in September, topping market expectations and marking
the highest since April 2012, according to the country's
National Bureau of Statistics. A separate reading by HSBC put
the PMI at 50.9, a seven-month high and matching an initial
estimate.
The data may revive optimism that growth in the world's No.
2 economy remains on track heading into the fourth quarter
despite weaker factory and trade data earlier, boding well for
demand for steel and its raw material iron ore.
The most-traded rebar contract for May delivery on the
Shanghai Futures Exchange touched a session high of
3,681 yuan ($600) a tonne, its loftiest since Oct. 16. It closed
up almost 1 percent at 3,671 yuan.
Rebar, used in construction, gained 1.7 percent for the
week, its biggest such climb since mid-August.
"The PMI number shows that there may be some acceleration in
the overall economy. There should be some demand support for
steel," said Helen Lau, senior mining analyst at UOB Kay Hian
Securities in Hong Kong, who sees rebar potentially gaining by
150 yuan over the next two months.