Steel reinforcement-bar futures climbed for a third day in Shanghai as the pace of manufacturing expansion increased in China, bolstering equities and commodities.
Rebar for delivery in October on the Shanghai Futures Exchange gained as much as 1.1 percent to 3,911 yuan ($629) a metric ton, before trading at 3,899 yuan at 10:47 a.m. local time. Futures climbed about 4.2 percent since reaching a three- month low of from 3,741 yuan on March 14.
A preliminary reading of a Purchasing Managers’ Index was 51.7 in March, according to a statement from HSBC Holdings Plc and Markit Economics. That’s above last month and also beats analysts’ estimates. The Shanghai Composite Index (SHCOMP) jumped 2.7 percent yesterday, the most since Jan. 14, and extended gains today.
“The stock market’s strong rally buoyed the sentiment in the otherwise sluggish rebar market, helping investors overcome the supply concern for now,” Wu Zhili, analyst at Shenhua Futures Co., said in a report today.
Iron ore for immediate delivery at Tianjin port fell 0.2 percent to $134.10 a ton yesterday, according to data compiled by The Steel Index Ltd. The average spot price of rebar retreated 0.2 percent yesterday to 3,680 yuan, according to data from Beijing Antaike Information Development Co.
To contact Bloomberg News staff for this story: Feiwen Rong in Beijing at firstname.lastname@example.org