Rebar for delivery in October on the Shanghai Futures Exchange fell as much as 1.1 percent to 3,890 yuan ($625) a metric ton, before trading at 3,927 yuan at 11 a.m. local time. The most-active contract on March 4 closed at 3,905 yuan, the lowest level since Dec. 27.
China’s daily crude steel output in late-February was estimated to have risen by 1.4 percent from the middle of the month to 2.03 million tons, according to industry consultancy Custeel.com. The average spot price for rebar fell for the fourth session yesterday to 3,764 yuan a ton, according to data from Beijing Antaike Information Development Co.
“The low-priced spot steel is widely available, which then enticed steel mills and trading companies to sell their products onto the higher-priced futures market, suppressing the futures market especially in the forward-months,” Nanhua Futures said in a report yesterday.
Iron ore for immediate delivery rose 0.3 percent to $146.30 a ton yesterday, according to data compiled by The Steel Index Ltd.
To contact Bloomberg News staff for this story: Feiwen Rong in Beijing at firstname.lastname@example.org