Angang Leads Steelmaker Gains on Inventory Drop: Shenzhen Mover
Angang Steel Co. (000898) gained the most in two years, leading gains by Chinese steelmakers, as inventories of the alloy fell and economic data showed rebounding growth.
The steelmaker’s shares jumped by as much as the 10 percent daily limit in Shenzhen and were trading 9.8 percent higher at 4.26 yuan as of 2:15 p.m. local time. Baoshan Iron & Steel Co., China’s largest listed steelmaker, climbed 1.2 percent in Shanghai and Wuhan Iron & Steel Co. increased 2.5 percent. China’s benchmark Shanghai Composite Index rose 0.5 percent.
A gauge of Chinese manufacturing showed a third month of expansion in December, the National Bureau of Statistics and the China Federation of Logistics and Purchasing reported on Jan. 1. That data was released as Jefferies Group Inc. said Dec. 31 that Chinese steel inventories had declined to the lowest since the end of 2009.
“The steel market is looking pretty good with inventories of all steel products relatively low, enabling producers to raise prices,” Yu Yang, analyst at Shenyin Wanguo Futures Co., said by phone from Shanghai. “That adds to sentiment that the economy is expected to perform well.”
Chinese markets resumed trading today after a three-day suspension for the New Year holiday.
To contact Bloomberg News staff for this story: William Bi in Beijing at firstname.lastname@example.org