Steel reinforcement-bar futures in Shanghai fell to the lowest in three weeks as a decline in the price of the raw material coke added to negative sentiment caused by escalating tensions in Syria.
Rebar for January delivery dropped as much as 0.7 percent to 3,742 yuan ($611) a metric ton, the lowest level for a most-active contract since Aug. 9. Futures traded at 3,755 yuan at 10:50 a.m. local time.
Futures of the steel-making ingredient coke for January delivery fell 4.3 percent in Dalian yesterday, the biggest one-day decline for the contract since June 20. The U.S. and the U.K. said they were ready to lead a military strike against Syria without United Nations approval.
“Coke prices fell a lot yesterday, which will drag down production costs for steel,” said Ren Xinlei, analyst at Luzheng Futures Co. in Jinan. “The market is also worried about the situation in Syria.”
Iron ore for immediate delivery at Tianjin port was little changed at $138.50 a dry ton yesterday, according to a price index compiled by The Steel Index Ltd. The average spot price of rebar was little changed yesterday at 3,605 yuan a ton, according to Beijing Antaike Information Development Co.
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