Dec. 7 (Bloomberg) -- Steel reinforcement-bar futures advanced, set for the biggest weekly increase in almost three months, as a strengthening Chinese economy may boost demand.
Rebar for May delivery rose as much as 1.5 percent to 3,647 yuan ($585) a metric ton on the Shanghai Futures Exchange, before trading at 3,634 yuan by 11:30 a.m. local time. Futures have climbed 4 percent this week, the biggest such gain since the week ended Sept. 14.
The average spot price of rebar, used in housing construction and infrastructure projects, jumped for a fourth day, according to data from Beijing Antaike Information Development Co. There is growing “enthusiasm” for urbanization projects in the southwest after the country’s leaders signaled there may be more pro-growth policies, Shenyin Wanguo Futures Co. said in a report today.
“If you look at daily production right now, it’s higher than last year,” Shenyin’s analyst Yu Yang said by phone from Shanghai. “We find steel companies are rather firm on their prices as they anticipate stronger demand,” she said.
Production nationwide has averaged about 1.9 million tons per day since October, compared with 1.6 million tons last year, Yu said, citing her analysis. Steel makers enjoy some profits now and expect continued improvement, she said.
Rebar for immediate delivery climbed 0.2 percent to 3,552 yuan a ton yesterday, Beijing Antaike’s data show. Spot iron ore advanced 0.4 percent to $118.40 a dry ton at Tianjin port yesterday, according to data from The Steel Index Ltd.
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