Steel reinforcement-bar futures fell, extending the biggest weekly decline in two months, amid rising output from domestic mills and a decline in the price of iron ore.
The contract for October delivery on the Shanghai Futures Exchange fell as much as 0.6 percent to 3,665 yuan ($593) before trading at 3,678 at 10:12 a.m. local time. Futures lost 4 percent last week, the biggest weekly decline since Feb. 22.
Spot iron ore at Tianjin port fell for the fifth day to $138 a dry ton on April 19, the Steel Index Ltd. data show. China’s daily crude steel output nationwide in early April was estimated to have risen 2.5 percent from late-March, Custeel.com analyst Hu Yanping said on April 18.
“Supply still exceeds demand in the rebar market,” Jiang Yuying, an analyst at Chengdu Brilliant Futures Co., said by phone from Shanghai today.
Still, demand for the building material may rise as an earthquake, measured at magnitude 6.6 by the U.S. Geological Survey, hit China’s southwestern Sichuan, killing 188 people, according to the China Central Television.
“Demand for the building material may increase from reconstruction,” Jiang added.
The average spot price for rebar dropped 0.5 percent to 3,595 yuan a ton on April 19, according to the Beijing Antaike Information Development Co.
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