Steel reinforcement-bar futures in Shanghai fell to the lowest in three weeks amid a decline in the price of the raw material coke and mills’ increased sales.
Rebar for January delivery dropped 0.5 percent to close at 3,749 yuan ($613) a metric ton, the lowest settlement for a most-active contract since Aug. 8.
Futures of the steel-making ingredient coke for January delivery fell 4.3 percent in Dalian yesterday, the biggest one-day decline for the contract since June 20. Rebar futures’ premium over the spot market price also enticed more steel mills to sell into the futures market to lock in profit, said Xia Caijun, analyst at GF Futures Co. in Guangzhou.
“Steel mills’ increased hedging in the futures market kept rebar under pressure,” Xia said.
The average spot price of rebar was little changed today at 3,606 yuan a ton, according to Beijing Antaike Information Development Co.
Iron ore for immediate delivery at Tianjin port was little changed at $138.50 a dry ton yesterday, according to a price index compiled by The Steel Index Ltd.