Steel reinforcement-bar futures traded near the highest in four months as investors weighed signs of improving demand against lower amounts of cash available at the end of the month.
Rebar for January delivery was unchanged at 3,818 yuan ($624) a metric ton at 10:30 a.m. local time, after swinging between 3,803 yuan and 3,835 yuan. Futures touched a four-month high of 3,848 yuan on Aug. 14.
Building material demand usually improves in autumn as construction increases on infrastructure and property projects across the country, said Zheng Nan, analyst at Shenyin & Wanguo Futures Co. in Shanghai. A monthly short-term liquidity squeeze for traders and wholesalers will weigh on prices, Zheng said.
“The market is held in consolidation mode at this point, which could last for a few days,” Zheng said.
The average spot price of rebar was little changed yesterday at 3,604 yuan a ton, according to Beijing Antaike Information Development Co. Iron ore for immediate delivery at Tianjin port was unchanged at $138.70 a dry ton, according to a price index compiled by The Steel Index Ltd.
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