Steel reinforcement-bar futures in China rose for the second day as iron ore extended a rally and as inventory of the building material fell to the lowest level since January.
Rebar for May delivery, the most-active contract by volume and open interest on the Shanghai Futures Exchange, rose by 0.2 percent to close at 3,677 yuan ($603) a metric ton. The contract lost 1.5 percent last month.
Iron ore for immediate delivery at Tianjin port, tracked by the Steel Index, jumped 2.6 percent on Nov. 1 to $135.30 a dry ton, the highest level since Sept. 5. The steel-making material for May delivery on the Dalian Commodity Exchange advanced 0.8 percent today to close at 950 yuan a ton. Rebar inventory in China slumped 5.2 percent to 5.66 million tons as of Nov. 1, the lowest since Jan. 4, according to Shanghai Steelhome Information Technology Co.
“Firmness in spot iron ore and a decline in rebar inventory provided support,” said Zheng Ge, an analyst at Wanda Futures Co. in Beijing.
The spot price of rebar gained 0.3 percent to 3,519 yuan a ton, according to Beijing Antaike Information Development Co.