Steel counters rebound after China inventory shrinks

-A +A

KUALA LUMPUR (June 7): Several steel producing companies saw their share prices rebound today after China steel inventory reportedly shrank in the past 11 out of 13 weeks.

As at 2:42pm, Ann Joo Resources Bhd gained 10 sen or 9.52% to RM1.15, Malaysia Steel Works (KL) Bhd rose 2.5 sen or 4.46% to 58.5 sen, Southern Steel Bhd increased by 3.5 sen or 3.65% to 99.5 sen, Lion Industries Corp Bhd went up by one sen to 34 sen and Hiap Teck Venture Bhd advanced by 2.5 sen to 32 sen.

Yesterday, referencing data from Shanghai Steelhome Information Technology Co, Bloomberg reported that inventories of reinforcement bar in China, which makes half the world's steel, have shrank in 11 of the past 13 weeks, and were at four million tons in the period to June 3, while iron ore port reserves also moderated, falling 0.4% to 100.25 million tons.

When contacted, Malacca Securities Sdn Bhd analyst Kenneth Leong told theedgemarkets.com that China's steel bar inventory data indicated that demand for steel had not been fully satisfied even after certain producers in China restarted production.