April 22 (Bloomberg) -- Steel reinforcement-bar futures fell, extending the biggest weekly decline in two months, as domestic mill output increased and iron ore prices declined.
The contract for October delivery on the Shanghai Futures Exchange fell by 1.1 percent to close at 3,647 yuan ($590). Futures lost 4 percent last week, the biggest weekly decline since Feb. 22.
Spot iron ore at Tianjin port fell for the fifth day to $138 a dry ton on April 19, the Steel Index Ltd. data show. China’s daily crude steel output in early April was estimated to have risen 2.5 percent from late March, Custeel.com analyst Hu Yanping said on April 18.
“Supply still exceeds demand in the rebar market,” Jiang Yuying, an analyst at Chengdu Brilliant Futures Co., said by phone from Shanghai today.
Still, demand for the building material may rise, said Jiang, as an earthquake, measured at magnitude 6.6 by the U.S. Geological Survey, hit China’s southwestern Sichuan, killing 188 people, according to the China Central Television.
The average spot price for rebar dropped 0.3 percent to 3,584 yuan a ton today, according to the Beijing Antaike Information Development Co.
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