Steel reinforcement-bar advanced for the first time in three days after a report that Jiangsu Shagang Co., China’s fifth-biggest producer, raised metal prices.
Rebar for delivery in May rose 0.1 percent to 3,793 yuan ($609) a metric ton on the Shanghai Futures Exchange, posting a third weekly gain. Futures have lost 10 percent this year as China’s growth cooled and state curbs on real estate cut demand for the material used in construction.
Shagang raised rebar prices by 50 yuan a ton, steel wire and rods by 100 yuan and coiled rebar by 100 yuan a ton each from today, Custeel.com, a researcher jointly owned by 16 large Chinese steel companies, reported. Shagang produced 32 million tons of steel in 2011, according to the researcher. Two calls to Shen Wenminng, vice president of Shagang, were not answered.
“Shagang lifting prices helped push up futures because it signals spot prices have solid support at current levels,” Zhang Lei, an analyst at Nanhua Futures Co., said by phone from Shenyang. “The support may come from the fact that iron ore prices have risen, which raised input costs,” he said.
The average spot price for rebar fell 0.1 percent to 3,623 yuan a ton, according to Beijing Antaike Information Development Co. Spot iron ore at Tianjin port was unchanged at $135.50 a dry ton yesterday, after surging 17 percent this month, according data from The Steel Index Ltd.