Jan. 7 (Bloomberg) -- Steel reinforcement-bar futures in Shanghai climbed for a fourth day to the highest in almost six months as mills raised their product prices amid rising demand and raw material prices.
Rebar for delivery in May gained as much as 1.4 percent to 4,047 yuan ($649) a metric ton on the Shanghai Futures Exchange, the highest since July 10, 2012, before trading at 4,013 at 11:31 a.m. Futures advanced 1.9 percent last week for a fifth weekly gain, the best run since March.
Baoshan Iron & Steel Co., China’s largest steelmaker, will raise hot-rolled steel product prices by 160 yuan per ton for February delivery, according to a statement on its website today. Prices of the cold-rolled steel products will be raised by 120 yuan per ton. Jiangsu Shagang Co. also raised its rebar steel prices by 150 yuan a ton on Jan. 1, according to Shenyin Wanguo Futures Co.
“Mills are raising prices as traders continued to boost stockpiles while prices of raw materials such as iron ore are advancing,” according to a report by Shanghai-based Shenyin Wanguo Futures today. “Sentiment is also buoyed by the generally higher real estate prices.”
Rebar surged 14 percent in December, the most since July 2009, as China’s economy headed for a rebound in the final three months of the year after a seven-quarter slowdown as the government increased infrastructure spending and accelerated investment-project approvals.
Spot iron ore at Tianjin port jumped 2.3 percent to $153.30 a dry ton on Jan. 4, the highest since Oct. 17, 2011, data compiled by The Steel Index Ltd. showed. The average spot price for rebar advance 0.9 percent to 3,676 yuan a ton on Jan. 4, the highest since Nov. 22, according to data from Beijing Antaike Information Development Co.
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