Rebar for May delivery fell as much as 0.9 percent to 4,018 yuan ($646) a metric ton on the Shanghai Futures Exchange today, before trading at 4,020 yuan at the 11:30 a.m. local time midday break. The contract reached 4,067 earlier today, the highest since July 9.
“The market chose to discount improving manufacturing data and focused on concern that the rally may have gotten ahead of itself as the spot lags behind, indicating weak demand during winter,” Wang Yaoyao, analyst at Huawen Futures Co., said by phone from Shanghai today.
The average spot price of rebar was little changed at 3,729 yuan a ton yesterday, according to data from Beijing Antaike Information Development Co. The futures market had jumped close to 7 percent before today in the past month, while the spot rebar have advanced by just 3 percent.
The preliminary reading of a Purchasing Managers’ Index was 51.9 in January, according to a statement from HSBC Holdings Plc and Markit Economics today. That compares with the 51.5 final reading for December and the 51.7 median estimate of 17 analysts surveyed by Bloomberg News.
Spot iron ore at Tianjin port advanced 1.2 percent to $147.7 a dry ton yesterday, according to The Steel Index Ltd.
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