BEIJING, May 31 (Reuters) - Chinese rebar and hot-rolled
coil futures jumped on Monday after the market recorded heavy
losses in the past few weeks following the government's vow to
stabilise commodity prices, although they reported the first
monthly drop in four.
The most-active construction rebar and hot-rolled
coils contracts on the Shanghai Futures Exchange had
jumped 14.5% and 17.5%, respectively, in the first 12 days this
month before plunging more than 24% in the following two weeks.
Affected by Beijing's policy and market sentiment, ferrous
prices have dropped. But iron ore's fall was lower than steel,
which "had put up a lot of pressure on steel firms' operation",
said Hunan Valin Steel.
The price for October delivery of rebar rose 2.5% to 5,027
yuan ($789.96) per tonne at close. The contract fell 6.8% in
Hot-rolled coils, used in the manufacturing sector, ended up
1.3% to 5,354 yuan a tonne and logged a 5.9% monthly drop.
Shanghai stainless steel futures, for July
delivery, rose 2.7% to 15,750 yuan per tonne.
Benchmark iron ore futures on the Dalian Commodity Exchange
, for September delivery, surged 45.3% to 1,106 yuan
Spot prices of iron ore with 62% iron content for delivery
to China <SH-CCN-IRNOR62>, compiled by SteelHome consultancy,
rose by $1 to $192.5 a tonne on Friday.
Other steelmaking ingredients were mixed.
Dalian coking coal fell 1.2% to 1,767 yuan a tonne
while coke rose 2.5% to 2,479 yuan per tonne.
Capacity utilisation rates of blast furnaces at 247 mills
across China rose to 91.41% last week, the highest since early
March, according to Mysteel consultancy.
($1 = 6.3636 Chinese yuan renminbi)
(Reporting by Min Zhang and Shivani Singh)