Steel reinforcement-bar futures were set for a second weekly gain after a report showed China’s manufacturing is expanding at the fastest rate in two years, boosting demand from the world’s biggest consumer.
Rebar for delivery in May rose as much as 0.8 percent to 4,063 yuan ($653) a metric ton on the Shanghai Futures Exchange and was at 4,056 yuan at 10:35 a.m. local time. The alloy climbed to 4,067 yuan yesterday, the highest since July 9, and has advanced 1.4 percent this week.
The preliminary reading of a Purchasing Managers’ Index was 51.9 in January, according to a statement from HSBC Holdings Plc and Markit Economics yesterday. That compares with the 51.5 final reading for December and the 51.7 median estimate of 17 analysts surveyed by Bloomberg News.
“The HSBC PMI’s big rebound suggests the present economic recovery is strong, and that is giving the rebar market a boost,” Fang Guodong, an analyst at Wanda Futures Co., said by phone from Zhengzhou.
The average spot price for rebar was unchanged at 3,729 yuan a ton yesterday, according to data from Beijing Antaike Information Development Co. Spot iron ore at Tianjin port rose 0.6 percent to $148.60 a dry ton yesterday, according to The Steel Index Ltd.