Steel reinforcement-bar futures climbed for a second day in Shanghai amid expectations that steel mills in Hebei will further cut output to reduce emissions.
Rebar for May delivery on the Shanghai Futures Exchange gained as much as 0.4 percent to 3,507 yuan ($580) a metric ton, the highest level since Jan. 7, and traded at 3,492 yuan at 10:15 a.m. local time.
Small-to-medium sized mills in Hebei, China’s biggest steel producer, are increasingly feeling the pressure to cut production as the government stepped up efforts to improve air quality, according to a report by the China Business News today.
“Output cuts are an ongoing theme in an otherwise sluggish market approaching the Lunar New Year holidays at the end of this month,” said Cai Yuehui, an analyst at Ruida Futures Co. in Fujian.
Iron ore futures for May delivery on the Dalian Commodity Exchange fell 0.2 percent to 878 yuan a ton. The steel-making ingredient for immediate delivery at the port of Tianjin tracked by The Steel Index dropped 1.1 percent to $129.50 a dry ton yesterday.
Rebar for immediate delivery tracked by Beijing Antaike Information Development Co. retreated 0.2 percent to 3,428 yuan a ton yesterday.
To contact Bloomberg News staff for this story: Feiwen Rong in Beijing at firstname.lastname@example.org
To contact the editor responsible for this story: Brett Miller at email@example.com