Rebar Rises as Data Signals Better Prospects for Global Recovery
Steel reinforcement-bar futures rose for the first time in four days, erasing a weekly loss, after reports from China to Europe and the U.S. boosted confidence in the prospects for global economic recovery.
Rebar for January delivery gained as much as 1.4 percent to 3,820 yuan ($624) a metric ton before trading at 3,813 yuan at 10:30 a.m. local time. The contract fell by 1.1 percent this week before today. Futures touched a four-month high at 3,848 yuan on Aug. 14.
Factory output in the euro area is improving more than economists estimated and the fewest U.S. workers in more than five years applied for jobless benefits, reports yesterday showed. Chinese factory output rose more than estimated in July, according to a report by the HSBC Holdings Plc and Markit Economics yesterday.
“Rebar’s upward trend doesn’t seem to have run its course yet with more positive economic indicators convincing everybody of a recovery story,” said Wang Yongliang, an analyst at Beijing Cifco Futures Co. in Tianjin.
The average spot price of rebar fell for the second day yesterday, dropping 0.4 percent to 3,622 yuan a ton, according to Beijing Antaike Information Development Co.
To contact Bloomberg News staff for this story: Feiwen Rong in Beijing at firstname.lastname@example.org