Steel reinforcement-bar futures fell in Shanghai, set for a fourth weekly loss, after the biggest steel producers across China cut prices amid slowing demand.
Rebar for May delivery on the Shanghai Futures Exchange dropped as much as 1.2 percent to 3,546 yuan ($586) a metric ton, and was at 3,550 yuan at 10:38 a.m. local time. Futures are down 1.8 percent this week.
Jiangsu Shagang Co. (002075), the biggest maker of rebar, lowered prices by 130 yuan a ton starting Jan. 1, while Hebei Iron & Steel Co., China’s largest steelmaker by output, cut rebar by 70 yuan and lowered prices of wire by 40 yuan, Luzheng Futures Co. said in a report today.
“Producers have been forced to cut prices because of slowing demand in winter and a liquidity shortage, and that’s adding more bearishness into the market,” said Lv Xiaohua, an analyst at Everbright Futures Co. in Shanghai.
Iron ore for May delivery on the Dalian Commodity Exchange dropped 1.3 percent to 895 yuan a ton. The contract for immediate delivery at the port of Tianjin tracked by The Steel Index gained 0.6 percent to $135 a dry ton yesterday.
Rebar for immediate delivery tracked by Beijing Antaike Information Development Co. was little changed at 3,499 yuan a ton yesterday.
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