Steel reinforcement-bar futures climbed for the first time in eight days, paring a fourth weekly drop, as the lowest prices in three months spurred purchases.
Rebar for delivery in October on the Shanghai Futures Exchange advanced 2.5 percent, the biggest gain since Feb. 8, to close at 3,860 yuan ($621) a metric ton today. The price dropped 1.7 percent this week.
“The slump in the rebar futures was too far and too swift,” Dang Man, analyst at Maike Futures Co., said by phone from Xi’an today.
Steel stockpiles at Chinese ports are the highest in almost a year, according to data from Shanghai Steelhome Information, a researcher based in the city. Raw-material iron ore dropped yesterday to the lowest level since Dec. 18 amid concern curbs on construction in China will reduce demand for the commodity used to make steel.
Steel prices in China may see a mild rebound in the second quarter as traders gradually destock their inventory and seasonal demand recovery begins to set in, said Judy Zhu, analyst at Standard Chartered Bank Plc.
The average spot price for rebar fell for a 10th day, declining 0.8 percent to 3,654 yuan, according to data from Beijing Antaike Information Development Co.