Steel reinforcement-bar futures fell for the first time in three days amid high inventory levels in China, the biggest user, and waning demand in the spot market.
Rebar for delivery in October dropped as much as 2 percent to 3,971 yuan ($638) a metric ton on the Shanghai Futures Exchange and traded at 3,982 at the 11:30 a.m. midday break.
Inventory jumped 68 percent this year through Feb. 22, according to Shanghai Steelhome Information. The average spot price for rebar fell 0.6 percent to 3,790 yuan a ton yesterday, its fifth straight loss, according to data from Beijing Antaike Information Development Co.
“The main concern in the market is still the weak spot demand and the rising inventory,” Xu Jiashun, an analyst at Yongan Futures Co., said by phone from Hangzhou today. “That will keep a lid on prices for now.”
Iron ore for immediate delivery was little changed at $151.70 a ton yesterday, according to data compiled by The Steel Index Ltd.
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