Steel reinforcement-bar futures climbed to the highest in four weeks on speculation that the U.S. Federal Reserve won’t rush to withdraw stimulus and that China will boost spending on construction projects.
Rebar for delivery in May gained as much as 0.5 percent to 3,661 yuan ($601) a metric ton on the Shanghai Futures Exchange, the highest intra-day level for a most active contract since Sept. 24. Futures traded at 3,655 yuan at 10:15 a.m. Beijing time, bringing gains this month to 1.9 percent.
Barclays Plc pushed out its estimate for the start of Fed tapering to March from December after data showed employers added 148,000 workers in September, below the 180,000 increase projected in a Bloomberg survey. China’s southwestern province Sichuan will invest 4.3 trillion yuan next year on projects including rail and an airport, Sichuan Daily reported yesterday.
“The expectation that the Fed will continue with its stimulus helped spark a rally,” said Wang Yongliang, an analyst at Beijing Cifco Futures Co. in Tianjin. “Local spending will increase steel consumption.”
The spot price of rebar was little changed at 3,491 a ton yesterday, according to Beijing Antaike Information Development Co.
Iron ore for May delivery, the most-active contract by volume on the Dalian Commodity Exchange, rose 0.2 percent to 950 yuan a ton. The commodity for immediate delivery at Tianjin port fell 0.8 percent to $134.30 a dry ton yesterday, according to a price index compiled by The Steel Index Ltd.
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