Steel rebar on the Shanghai Futures Exchange inched up 0.3% in early July 2 trade after three straight losses, as government financial support sparked hopes for a demand increase, although the sector is in the midst of its off-peak rainy season.
China's finance ministry has said it is planning to sell more special treasury bonds to fund public health-related infrastructure facilities and aid a virus-hit economy, part of a proposal to issue 1 trillion yuan in such bonds this year.
The most-traded October contract of construction steel rebar, gained 0.3% to 3,572 yuan/t ($505.44/t) as of 0215 GMT, rising for the first time this week.
Benchmark iron ore futures on the Dalian Commodity Exchange, for September delivery, rose 0.6% to 746 yuan/t.
Spot prices of iron ore with 62% iron content for delivery to China held at $101.50/t on July 1, unchanged from the previous session.
Dalian coking coal increased 1.5% to 1,193 yuan/t. Coke edged up 0.05% to 1,877 yuan/t.
Hot-rolled coils on the Shanghai bourse, used in the manufacturing sector, dipped 0.2% to 3,563 yuan/t.
Shanghai stainless steel, for August delivery, jumped 0.8% to 13,235 yuan/t.
China also will allow local governments to use part of the money they raise from special bonds this year to recapitalise some small banks, the cabinet said on July 1, seeking to shore up banks and support struggling small firms amid the coronavirus crisis.
(Writing by Tammy Yang Editing by Jessie Jia)
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