Nanjing Iron, Chinese Steelmakers Gain on Demand

Nanjing Iron & Steel Co. rose to a more than five-month high in Shanghai trading, leading a rally in Chinese steelmakers, on speculation demand for the construction material will increase.
Nanjing Iron, based in China’s eastern Jiangsu province, climbed 3.1 percent to 3.94 yuan, the highest close since Sept. 22. Gansu Jiu Steel Group Hongxing Iron & Steel Co. jumped 9.8 percent to 6.85 yuan, the second-biggest percentage gain on the CSI 300 Index. Baoshan Iron & Steel Co., the largest Chinese steelmaker, added 1.1 percent to 5.66 yuan.
The Purchasing Managers’ Index in China rose to 45.3 in January from 41.2 a month earlier, suggesting a bottom in manufacturing. Steel and cement are among industries aided by a 4 trillion-yuan ($586 billion) stimulus package aimed at averting recession in the world’s third-largest economy.
“The worst is probably over,” Ma Keming, an analyst at Huatai Securities Co., said by telephone. “The PMI and rebound in steel prices are tentative signs that demand for steel is increasing.”
The benchmark Shanghai Composite Index fell 0.5 percent to 2,098.02.