Steel reinforcement-bar futures fell to near the lowest level in three months as inventory piled up China and mills continued to increase output.
Rebar for delivery in October on the Shanghai Futures Exchange fell by 0.8 percent to close at 3,829 yuan ($616) a metric ton today. The price dropped to 3,741 yuan a ton on March 14, the lowest for a most-active contract since Dec. 14.
China’s daily crude steel output nationwide in early-March was estimated at 2.08 million tons, up 2.5 percent from the level in late-February, according to Custeel.com report today, citing data from the China Iron & Steel Association. Inventory jumped 86 percent this year through March 8, according to Shanghai Steelhome Information.
“Fundamentals look bearish with most steel mills ramping up production while inventory is piling up,” Xia Caijun, analyst at GF Futures Co., said in a report today.
Raw-material iron ore for immediate delivery gained 1.3 percent on March 15 to $134.60 a ton, according to data compiled by The Steel Index Ltd.
The average spot price for rebar gained today by 1.1 percent to 3,694 yuan a ton, according to data from Beijing Antaike Information Development Co.