Steel reinforcement-bar futures climbed for the first time in eight days, paring a fourth weekly drop, as the lowest prices in three months spurred purchases.
Rebar for delivery in October on the Shanghai Futures Exchange advanced as much as 0.7 percent to 3,791 yuan ($610) a metric ton and was at 3,773 yuan at 9:55 a.m. local time. The price has dropped 4 percent this week, the most since the week ended Feb. 22.
“The slump in the rebar futures was too far and too swift,” Dang Man, analyst at Maike Futures Co., said by phone from Xi’an today. “We think rebar futures will remain weak for a while as bearish fundamentals have to run their course.”
Steel stockpiles at Chinese ports are the highest in almost a year, according to data from Shanghai Steelhome Information, a researcher based in the city. Raw material iron ore dropped the most yesterday since Jan. 16 to the lowest level since Dec. 18 amid concern curbs on construction in China will reduce demand for the commodity used to make steel.
The average spot price for rebar fell for a ninth day yesterday, declining 0.7 percent to 3,684 yuan, according to data from Beijing Antaike Information Development Co.
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