Rebar Gains to 12-Week High as Cash Market Signals More Demand
Steel reinforcement-bar futures climbed to close at the highest close in almost 12 weeks as rising volumes in the spot market boosted the demand outlook.
The contract for May delivery increased 2.2 percent to end at 3,732 yuan ($597) a metric ton on the Shanghai Futures Exchange, the highest close since July 31. Rebar for immediate delivery advanced 0.2 percent to 3,752 yuan a ton today, according to Beijing Antaike Information Development Co.
Futures rose 0.3 percent last week after economic releases fueled optimism that a slowdown in China was coming to an end. The economy grew 7.4 percent in the third quarter from a year earlier, data showed Oct 18, matching the median estimate in a Bloomberg survey. Industrial production rebounded from a three- year low and retail sales and fixed-asset investment accelerated in September, according to the National Bureau of Statistics.
“Both the real-estate sector and infrastructure have shown some improvement,” said Zhang Jizhou, a trader at Shanghai Flow Investment Co. “The spot market has been enjoying quite an active sales volume since late September, which has led to a premium in the spot market over the nearby futures contracts.”
New-home prices in 31 of the 70 cities monitored by the government climbed in September from a month earlier, the statistics bureau said Oct. 18.
Iron ore with 62 percent content delivered to the port of Tianjin fell 0.2 percent to $115.30 a dry ton on Oct. 19, data compiled by the Steel Index Ltd. show.
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