Steel reinforcement-bar futures rose for a third day in Shanghai as prices of raw-material iron ore advanced on concern that Australian supplies will be disrupted.
Rebar for May delivery on the Shanghai Futures Exchange gained as much as 0.4 percent to 3,628 yuan ($598) a metric ton and traded at 3,616 yuan at 10:03 a.m. local time.
Iron ore futures in Dalian jumped to the highest since Dec. 17 as shipments of the raw material from northern Australia, the biggest exporter, were halted as a cyclone was expected to make landfall tonight. Rebar for immediate delivery tracked by Beijing Antaike Information Development Co. added 1.1 percent to 3,507 yuan a ton on Dec. 27, the first increase since Dec. 16.
“A snag in Australian supplies will boost iron ore and rebar,” said Xie Zhaowei, an analyst at Huatai Great Wall Futures Co. in Shanghai. “Rebar cash prices are finding some bigger-than-expected strength, and that in turn is helping support the May contract.”
Iron ore for May delivery on the Dalian Commodity Exchange rose as much as 1.4 percent to 920 yuan a ton and last traded at 914 yuan. The contract for immediate delivery at the port of Tianjin tracked by The Steel Index gained 1.4 percent to $134 a dry ton on Dec. 27, the biggest advance since Nov. 1.
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