Steel reinforcement-bar futures climbed for a third day in Shanghai as the pace of manufacturing expansion increased in China, bolstering equities and commodities.
Rebar for delivery in October on the Shanghai Futures Exchange gained by 0.9 percent to close at 3,902 yuan ($628) a metric ton. Futures climbed about 4.3 percent since reaching a three-month low of from 3,741 yuan on March 14.
A preliminary reading of a Purchasing Managers’ Index was 51.7 in March, according to a statement from HSBC Holdings Plc and Markit Economics. That’s above last month and beats analyst estimates. The Shanghai Composite Index jumped 2.7 percent yesterday, the most since Jan. 14, and extended gains today.
“The stock market’s strong rally buoyed the sentiment in the otherwise sluggish rebar market, helping investors overcome the supply concern for now,” Wu Zhili, analyst at Shenhua Futures Co., said in a report today.
Iron ore for immediate delivery at Tianjin port fell 0.2 percent to $134.10 a ton yesterday, according to data compiled by The Steel Index Ltd. The average spot price of rebar was little changed today at 3,683 yuan, according to data from Beijing Antaike Information Development Co.