China steel rises for 4th straight month after upbeat PMI

Chinese rebar steel futures rose nearly 2 per cent on Thursday and posted their fourth monthly gain in a row after data showed growth in the countrys manufacturing sector sped up in August, underpinning the outlook for steel demand. 

Iron ore futures climbed almost 4 per cent and also ended August higher, rising for a third straight month. 

Chinas Purchasing Managers Index rose to 51.7 this month from Julys 51.4, topping market expectations and staying well above the 50-point mark that separates growth from contraction on a monthly basis. 

Separate data showed activity in Chinas steel industry - the worlds biggest - expanded in August at the fastest pace since April 2016 as mills boosted output to chase rising prices. 

"We think this positive development in Chinas economy is a tailwind for commodity demand, which should not be underestimated any more," Argonaut Securities analyst Helen Lau said in a note. 

The most-active rebar on the Shanghai Futures Exchange closed up 1.8 per cent at 3,927 yuan ($596) a tonne, after falling as much as 1.9 per cent earlier. The construction steel product rose nearly 11 per cent this month.