Rebar Advances for 7th Day as Iron Ore Rises to Three-Month High

Steel reinforcement-bar futures in Shanghai climbed for the seventh day after prices of iron ore, a key ingredient in steel making, jumped to the highest in more than three months.

Rebar for January delivery on the Shanghai Futures Exchange climbed as much as 0.7 percent to 3,740 yuan ($611) a metric ton, the highest level since April 17, and was at 3,733 yuan at 10:15 a.m. local time. The price is up 2.4 percent this month.

Iron ore for immediate delivery rose for a fourth day yesterday, adding 1.3 percent to $133.10 a dry ton, the highest since April 30, according to a price index compiled by The Steel Index Ltd. Iron ore entered a bull market on July 26 after China replenished inventories and boosted steel output. China’s economic-planning agency said this week the construction of transportation-related infrastructure projects would be accelerated, adding to efforts to boost domestic demand. The country is the world’s top user of steel.

“The raw material’s price gain was a major boost to steel prices,” said Zhang Yichen, an analyst at Yongan Futures Co. in Beijing. “Rebar is also supported by improved demand prospects as China may ramp up investments in infrastructure such as railroads in the second half of this year.”

The average spot price of rebar advanced 0.3 percent to 3,476 yuan a ton yesterday, according to Beijing Antaike Information Development Co.

To contact Bloomberg News staff for this story: Feiwen Rong in Beijing at frong2@bloomberg.net

To contact the editor responsible for this story: Brett Miller at bmiller30@bloomberg.net

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