Steel reinforcement-bar futures in Shanghai fell from the highest level in more than six months because of concern that demand in the spot market will wane amid a slowdown in construction in winter.
Rebar for delivery in May fell 0.5 percent to 4,032 yuan ($648) a metric ton on the Shanghai Futures Exchange today. The contract earlier reached 4,067, the highest since July 9.
“The market chose to discount improving manufacturing data and focused on concern that the rally may have gotten ahead of itself as the spot lags behind, indicating weak demand during winter,” Wang Yaoyao, an analyst at Huawen Futures Co., said by phone from Shanghai today.
The average spot price of rebar was unchanged at 3,729 yuan a ton today, according to data from Beijing Antaike Information Development Co.
The preliminary reading of a Purchasing Managers’ Index was 51.9 in January, according to a statement from HSBC Holdings Plc and Markit Economics today. That compares with the 51.5 final reading for December and the 51.7 median estimate of 17 analysts surveyed by Bloomberg News.
Spot iron ore at Tianjin port advanced 1.2 percent to $147.70 a dry ton yesterday, according to The Steel Index Ltd.