Nov. 22 (Bloomberg) -- Steel reinforcement-bar futures in Shanghai advanced as China’s biggest producer of the building material maintained product prices and as inventory fell to the lowest level in 34 months.
Rebar for May delivery, the most-active contract on the Shanghai Futures Exchange, rose 2 yuan to close at 3,614 yuan ($593) a metric ton, bringing this week’s gains to 0.6 percent. Futures lost 2.2 percent in the prior two weeks.
Jiangsu Shagang Co. kept the price of its rebar products unchanged at 3,650 yuan to 3,680 yuan, according to Shanghai Steelhome Information Technology Co. Shagang kept its prices unchanged for late November and mills have agreed to compensate key distributors for any losses on price drops, Melinda Moore, an analyst at Standard Bank Plc in London, said yesterday.
“Major steelmakers maintaining their prices helps anchor sentiment,” said Cai Yuehui, an analyst at Ruida Futures Co. in Fujian.
Rebar inventory tracked by the Shanghai Steelhome Information Technology Co. fell for the fifth week last week to 5.3 million tons, the lowest since Jan. 14, 2011.
Iron ore for May delivery on the Dalian Commodity Exchange dropped 0.1 percent to close at 931 yuan a ton. Iron ore for immediate delivery at Tianjin port tracked by The Steel Index was little changed yesterday at $136.30 a dry ton.
Rebar for immediate delivery tracked by Beijing Antaike Information Development Co. was little changed at 3,532 yuan a ton.
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