Steel reinforcement-bar futures climbed for a second day in Shanghai amid expectations that mills in Hebei, China’s biggest steel-producing province, will further cut production to reduce emissions.
Rebar for May delivery on the Shanghai Futures Exchange gained 0.2 percent to end at 3,498 yuan ($579) a metric ton, the highest close since Jan. 6.
Small-to-medium sized steel producers in Hebei are increasingly feeling the pressure to cut output as the government stepped up efforts to improve air quality, according to a report by the China Business News today.
“Output cuts are an ongoing theme in an otherwise sluggish market approaching the Lunar New Year holidays at the end of this month,” said Cai Yuehui, an analyst at Ruida Futures Co. in Fujian.
Iron ore futures for May delivery on the Dalian Commodity Exchange fell 0.1 percent to close at 879 yuan a ton. The steel-making ingredient for immediate delivery at the port of Tianjin tracked by The Steel Index dropped 1.1 percent to $129.50 a dry ton yesterday.
Rebar for immediate delivery tracked by Beijing Antaike Information Development Co. was little changed today at 3,425 yuan a ton.
— With assistance by Feiwen Rong