Rebar for delivery in May dropped as much as 0.9 percent to 3,899 yuan ($627) a metric ton on the Shanghai Futures Exchange. It traded 3,909 yuan at the end of the morning trading session.
Spot iron ore at Tianjin port, a benchmark for the raw material, fell for a fifth straight day yesterday, dropping 4.9 percent to $145.40 a ton, according to The Steel Index Ltd. That extended the loss to 8.3 percent after peaking $158.50 on Jan. 8, the highest in more than a year.
“The pull-back in iron ore prices took away a key support for rebar prices,” Wang Yangqing, analyst at Nanhua Futures Co., said by phone from Hangzhou. “There are no significant fundamental changes to support a further rally, so the market is forced to look at the weak physical market.”
Rebar inventory on Jan. 11 climbed 2.4 percent from a week earlier to 5.8 million tons, according to Shanghai Steelhome Information Technology Co. The average spot price for rebar was little changed at 3,733 yuan a ton, according to data from Beijing Antaike Information Development Co.
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