Reuters reported that Shanghai steel futures rose for a third time in four sessions on Wednesday after data showing slower Chinese inflation suggested there was room for Beijing to relax its monetary policy, a move that may revive demand.

The most traded May rebar contract on the Shanghai Futures Exchange rose half a percent to close at CNY 4,161 a tonne.

Rebar has gained 1% so far this week after dropping 1.4% last week.

China's annual inflation rate eased to 5.5% in October, a third straight month of decline from July's three year peak and Premier Mr Wen Jiabao said prices had fallen further since.

(Sourced from Reuters)