FTSE 250 movers: Steelmakers surge while Drax Power fizzles

The FTSE 250 was eking out an afternoon in the green on Monday, reversing losses seen earlier in the session after disappointing data from China weighed on concern about the world's second-largest economy.

FTSE 250

20,517.92

16:59 08/11/24

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Miners and steelmakers led the risers, with Evraz, Vedanta Resources and Kaz Minerals all among the leaders in afternoon trading.

Steel prices have been consistently rising despite a glut of supply from China, with a recent 20% price spurt giving some steel firms the best profits in a decade.

In China, Haixin Steel - a single mill which can product half of the UK’s entire annual output - has been fired up for the first time since 2014, cashing in on the current prices.

The good times for steelmakers came with a warning, however, as elevated output “definitely adds to oversupply risks and exports may continue to rise,” according to Argonaut Securities Asia analyst Helen Lau.

Investors were also rewarding housebuilder Crest Nicholson, despite rates of new house completions, sales per week and total forward sales all slowing in the first half of the year compared to its last financial year.

Average selling prices were up 24%, however, as management’s strategy of investing in high-quality locations started to reap rewards.

"We are continuing to see strong demand for new homes, underpinned by robust employment conditions and good mortgage access," said chief executive Stephen Stone.

"The business remains well positioned to continue delivering for all of our stakeholders and is on track to reach its stated target of £1bn of revenues in 2016."

On the downside, Drax Power was a big loser after the UK managed to meet its entire power supply without coal last week.

The company, which operates the coal and biomass-fuelled Drax power plant, was sliding significantly after the country was powered without recourse to coal for the first time ever on seven separate occasions in the seven days to Sunday.

From 9 May to lunchtime on Sunday, the UK was at zero-coal for almost a third of the time.

Asia-exposed fashion house Jimmy Choo was down, after economic data from China disappointed and sent sentiments around the People’s Republic towards the floor.

Factory output growth slowed to 6% for April - some way off the 6.5% forecast.

FTSE 250 - Risers

Evraz (EVR) 122.20p 6.08%
Kaz Minerals (KAZ) 156.60p 5.60%
Vedanta Resources (VED) 388.30p 5.37%
Tullow Oil (TLW) 261.50p 5.23%
Victrex plc (VCT) 1,503.00p 5.10%
Crest Nicholson Holdings (CRST) 551.00p 4.95%
Restaurant Group (RTN) 301.40p 4.44%
Ophir Energy (OPHR) 69.50p 3.73%
Aldermore Group (ALD) 192.60p 3.05%
Melrose Industries (MRO) 396.20p 2.86%