Reuters reported that Shanghai steel futures jumped 1.6 percent on Wednesday, tracking gains in equities, after China's next president said the state will fine tune policies to ensure stable economic growth next year, boosting the outlook for steel demand.

The most actively traded rebar contract for May delivery on the Shanghai Futures Exchange closed up CNY 57 at CNY 3,619 per tonne, stretching its upward streak to a third straight session.

Communist Party chief Mr Xi Jinping, who assumes Mr Hu Jintao's job as head of state in March, said on Tuesday that the government will fine tune policies when needed and exert more effort to lift domestic demand. The news sent Shanghai stocks soaring nearly 3% and pushed up Asian shares to their highest in 16 months.

According to the Chinese Academy of Social Sciences, the country's top think-tank, in response to pro-growth policies, China's economic growth may quicken to 8.2% in 2013 from a forecast 7.7% this year.