Steel reinforcement-bar futures rose, extending the first weekly gain in four on speculation the People’s Bank of China may follow other central banks in cutting interest rates and as iron ore prices climbed this week.
Rebar for delivery in October on the Shanghai Futures Exchange rose 0.5 percent to close at 3,639 yuan a metric ton ($593). The most-active contract climbed 1.6 percent this week, the first weekly gain since April 12.
The Bank of Korea cut interest rates on May 9, following the lead of policy makers in Australia, Europe and India this month. Yesterday China reported inflation below the government’s 3.5 percent target and the steepest decline in producer prices in six months, highlighting weakness in the world’s second-biggest economy. Spot iron ore at Tianjin port gained 1.6 percent this week and was little changed at $130.20 a dry ton yesterday, Steel Index Ltd. data show.
“The rebar market was boosted by speculation that China may follow other central banks in cutting interest rates,” Dang Man, an analyst at Maike Futures Co., said by phone from Xi’an.
The average spot price for rebar fell 0.3 percent to 3,584 yuan a ton today, according to Beijing Antaike Information Development Co.