Steel reinforcement-bar futures in Shanghai rose to the highest almost two weeks on speculation of rising demand after a government report showed profit growth for industrial companies accelerated.
Rebar for delivery in January on the Shanghai Futures Exchange rose 0.1 percent to 3,818 yuan ($624) a metric ton, the highest close since Aug. 15 for a most-active contract. Futures, which reversed an earlier decline today after the report, have advanced 4.8 percent this month.
Industrial-profit growth rebounded in July, adding to signs that the world’s second-biggest economy is stabilizing after a two-quarter slowdown. Net income rose 12 percent from a year earlier after gaining 6.3 percent in June, the statistics bureau said in Beijing today.
“The economy is generally seen turning stronger, and that’s bullish for rebar’s demand outlook,” said Huang Huiwen, analyst at Shanghai Cifco Futures Co.
Rebar for immediate delivery fell 0.1 percent today to 3,604 yuan a ton, according to Beijing Antaike Information Development Co. Iron ore for immediate delivery at Tianjin port gained 0.1 percent to $138.70 a dry ton yesterday, according to a price index compiled by The Steel Index Ltd.