Steel reinforcement-bar futures dropped on concern that cold weather across northern China will slow construction and reduce demand for the building material.
Rebar for delivery in May fell 0.1 percent to 3,790 yuan ($608) a metric ton on the Shanghai Futures Exchange. Futures have lost 10 percent this year as China’s slowing economy and real estate curbs cut steel consumption.
A cold front brought temperatures of minus 40 degrees Celsius (minus 40 degrees Fahrenheit) to northern China, as officials urged cities to conserve heating and two tourists died after they were stranded on a mountain, the China Daily newspaper reported. The cold may continue with the temperature in Beijing plunging to minus 11 degrees Celsius today, the China Meteorological Administration said on its website.
“The cold weather pattern is halting construction activities,” Dang Man, an analyst at Maike Futures Co., said by phone from Xi’an.
The average spot price for rebar fell 0.3 percent to 3,612 yuan a ton, according to Beijing Antaike Information Development Co. Spot iron ore at Tianjin port lost 0.1 percent to $135.40 a dry ton on Dec. 21, data compiled by The Steel Index Ltd showed.