Rebar Trades Near 9-Month Low on Signs of Slowing Chinese Growth
Steel reinforcement-bar futures in Shanghai traded near the lowest level in nine months as investors returning from a three-day holiday remained concerned that economic growth shows signs of slowing in the world’s biggest steel consumer.
Rebar for delivery in October on the Shanghai Futures Exchange fell as much as 1 percent to 3,386 yuan ($552) a metric ton, the cheapest since Sept. 7, and was at 3,426 yuan at 11:09 a.m. local time. Futures have dropped 14 percent this year.
Industrial production last month rose a less-than-forecast 9.2 percent from a year earlier and factory-gate prices fell for a 15th month, Chinese government data showed over the weekend. Export gains were at a 10-month low and imports dropped after a crackdown on fake trade invoices while fixed-asset investment growth slowed and new yuan loans declined.
“The numbers haven’t been good,” Wang Yongliang, an analyst at Beijing CIFCO Futures Co., said today by phone from Tianjin. “But rebar prices may fluctuate at this point because prices have come down a lot and some investors may prefer to take profit in their previous short positions for now.”
Iron ore for immediate delivery at Tianjin port in China was unchanged at $110.90 a dry ton yesterday, according to the Steel Index Ltd. The steel making ingredient fell to $110.40 a dry ton on May 31, the lowest since October.
The average spot price for rebar fell 0.5 percent to 3,422 yuan a ton on June 7, according to data from Beijing Antaike Information Development Co.
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