Steel futures in China rose in morning trade on December 2, extending their gains to a third session, as a surprisingly high gauge of factory activity for November boosted sentiment.
China's official Purchasing Managers' Index (PMI) released on November 30 pointed to an unexpected improvement in its manufacturing sector in November, as demand picked up on Beijing's stimulus measures.
Another private business survey released on December 2 also showed total new orders and factory production remained at buoyant levels last month, expanding at the quickest pace in almost three years.
The most-active January contract for hot-rolled coils, which are used in cars and home appliances, on the Shanghai Futures Exchange gained as much as 1.7% to 3,613 yuan/t ($513.29/t). It was up 1.6% at 3,610 yuan/t as of 0330 GMT.
The construction steel rebar on the Shanghai bourse jumped 0.5% to 3,637 yuan/t.
Building of infrastructure could help support steel product consumption, though demand may ebb as winter progresses, Huatai Futures said in a note on December 2.
Benchmark iron ore futures contract on the Dalian Commodity Exchange for January 2020 delivery rose 0.4% to 648 yuan/t.
(Writing by Jessie Jia Editing by Harry Huo)
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