Steel reinforcement-bar futures fell for the first time in three days amid high inventory levels in China, the biggest user, and waning demand in the spot market.
Rebar for delivery in October dropped by 0.8 percent to close at 4,020 yuan ($646) a metric ton on the Shanghai Futures Exchange today. The October contract has retreated 3.3 percent last month.
Inventory jumped 68 percent this year through Feb. 22, according to Shanghai Steelhome Information. The average spot price for rebar fell 0.6 percent to 3,790 yuan a ton yesterday, its fifth straight loss, according to data from Beijing Antaike Information Development Co.
“The main concern in the market is still the weak spot demand and the rising inventory,” Xu Jiashun, an analyst at Yongan Futures Co., said by phone from Hangzhou today. “That will keep a lid on prices for now.”
Iron ore for immediate delivery was little changed at $151.70 a ton yesterday, according to data compiled by The Steel Index Ltd.
— With assistance by Feiwen Rong