China Rebar Drops to Five-Month Low on Iron Price, Mill Supplies
The contract for October delivery on the Shanghai Futures Exchange lost as much as 1.9 percent to 3,533 yuan ($574) a metric ton today, the cheapest since Dec. 3, and was at 3,551 yuan at 10:11 a.m. local time. Futures, which reopened after a three-day holiday, lost 6.2 percent in the previous two weeks.
Spot iron ore at Tianjin port was reported at $134.10 a dry ton on April 30, the lowest since March 20, Steel Index Ltd. data show. China’s daily crude steel output nationwide in mid- April was estimated at 2.116 million tons, up 52,100 tons a day from same period a month earlier, according to Custeel.com, which cited data from the China Iron & Steel Association.
“The lower iron ore price is pressuring the market, while Chinese mills’ output remained at a high level,” Li Meng, analyst at Huatai Changcheng Futures Co., said by phone from Shanghai today. The average spot price for rebar was up 0.2 percent at 3,574 yuan a ton on April 26, according to the Beijing Antaike Information Development Co.
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