Rebar Drops for First Time in Six Days as Winter Demand Wanes
Steel reinforcement-bar futures in Shanghai fell for the first time in six days on speculation demand for winter stockpiling was waning.
Rebar for delivery in May declined as much as 0.9 percent to 3,976 yuan ($639) a metric ton on the Shanghai Futures Exchange today, before trading at 3,997 yuan at 11:04 a.m. Futures reached 4,047 yuan on Jan. 7, the highest since July 10.
Prices surged 14 percent in December, the most since July 2009, as China’s economy headed for a rebound in the final three months of the year after a seven-quarter slowdown as the government increased infrastructure spending and accelerated investment-project approvals. Iron ore climbed to the highest in almost 15 months yesterday.
“All the recent bullish factors have been priced in at this point, so a retreat and consolidation looks natural as demand from winter stockpiling draws to an end,” according to a report by Beijing CIFCO Futures Co.
Spot iron ore at Tianjin port gained 3 percent to $158.50 a dry ton yesterday, the highest since Oct. 13, 2011, data compiled by The Steel Index Ltd. showed. The average spot price for rebar was unchanged at 3,774 yuan a ton yesterday, the highest level since Oct. 15, according to data from Beijing Antaike Information Development Co.
To contact Bloomberg News staff for this story: Feiwen Rong in Beijing at firstname.lastname@example.org