Steel reinforcement-bar futures advanced to the highest level in more than six months amid optimism that demand is rising in China as the Shanghai stock market headed for a second monthly gain.
Rebar for delivery in May advanced by as much as 1 percent to 4,109 yuan ($660) a metric ton on the Shanghai Futures Exchange today, highest price since June 26. The contract traded at 4,102 at 10:27 a.m. local time.
China’s Shanghai Composite Index (SHCOMP), the benchmark of the local equity market, climbed to 2,358.98 yesterday, extending its advance since Dec. 3 to 20 percent, a threshold signaling a bull market to some investors.
“The market overlooked the thin demand in the spot market and chose to focus on the bullish sentiment from the stock market,” Ruida Futures Co. said in a report today.
Spot iron ore at Tianjin port unchanged at $148.40 a dry ton yesterday, according to The Steel Index Ltd. The average spot price for rebar was unchanged at 3,733 yuan a ton yesterday, according to data from Beijing Antaike Information Development Co.
To contact Bloomberg News staff for this story: Feiwen Rong in Beijing at email@example.com
To contact the editor responsible for this story: Brett Miller at firstname.lastname@example.org