Steel reinforcement-bar futures climbed for a second day as a rally above a technical level strengthened investor sentiment.
Rebar for delivery in October on the Shanghai Futures Exchange gained as much as 0.7 percent to 3,868 yuan ($623) a metric ton before trading at 3,863 at 11:11 a.m. local time. The contract dropped to a three-month low of 3,741 yuan on March 14 and declined 3.1 percent this year.
The sell-off in the building material paused yesterday and prices closed above the five-day moving average, signaling that rates may rise in the short-term, Shenyin & Wanguo Futures Co., said in a report today.
“Weak fundamentals haven’t changed in the market but the from a technical point of view, the futures’ rally above a five- day moving average aligned the market in a bullish pattern in the short term,” said the report.
Iron ore for immediate delivery fell 0.2 percent to $134.40 a ton yesterday, according to data compiled by The Steel Index Ltd. The average spot price of rebar retreated 0.2 percent yesterday to 3,686 yuan, according to data from Beijing Antaike Information Development Co.
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