Rebar Falls From 7-Week High on Ore Inventory, Freezing Weather
Rebar for May delivery, the most-active contract on the Shanghai Futures Exchange, fell as much as 0.3 percent to 3,701 yuan ($608) a metric ton, and traded 3,703 yuan at 10:40 a.m. local time. It closed at the highest since Oct. 14 yesterday.
Domestic iron ore stockpiles advanced for a fourth week to a one-year high of 80.1 million tons on Nov. 29, according to data from Beijing Antaike Information Development Co. Sub-zero temperatures in northern China are shutting down construction, according to Shang Jinyu, a Zhengzhou-based analyst at Zhongyuan Futures Co.
“Traders are concerned the recent rally led by strong iron ore prices is unsustainable given the huge inventories of ore,” Shang said. “Demand will continue to slow as the colder weather halts construction.”
Iron ore for May delivery on the Dalian Commodity Exchange fell 0.5 percent to 947 yuan a ton. The steel-making material for immediate delivery at Tianjin port tracked by The Steel Index rose 1.1 percent to $139.70 a dry ton yesterday.
Rebar for immediate delivery tracked by Beijing Antaike Information Development Co. gained 0.2 percent yesterday to 3,550 yuan a ton.
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