Steel reinforcement-bar futures in Shanghai climbed for a seventh day after prices of iron ore, a key ingredient in steel making, jumped to the highest in more than three months.
Rebar for January delivery on the Shanghai Futures Exchange climbed 0.8 percent to close at 3,743 yuan ($612) a metric ton, the highest for a most-active contract since April 16. The price is up 2.7 percent this month.
Iron ore for immediate delivery rose for a fourth day yesterday, adding 1.3 percent to $133.10 a dry ton, the highest since April 30, according to a price index compiled by The Steel Index Ltd. China’s imports of the commodity jumped to a record 73.14 million tons last month, customs data showed today. Iron ore entered a bull market on July 26 after China replenished inventories and boosted steel output.
“The raw material’s price gain was a major boost to steel prices,” said Zhang Yichen, an analyst at Yongan Futures Co. in Beijing. “Rebar is also supported by improved demand prospects as China may ramp up investments in infrastructure such as railroads in the second half of this year.”
China’s economic-planning agency said this week the construction of transportation-related infrastructure projects would be accelerated, adding to efforts to boost domestic demand. The country is the world’s top user of steel.
The average spot price of rebar jumped 0.7 percent to 3,499 yuan a ton today, according to Beijing Antaike Information Development Co.