Rebar Advances to Nine-Month High as Iron Ore Rallies on DemandBloomberg News
Steel reinforcement-bar futures in Shanghai climbed to the highest level in nine months, supported by higher costs for inputs including iron ore.
Rebar for delivery in October gained 1 percent to 4,254 yuan ($682) a metric ton on the Shanghai Futures Exchange, the highest price at close for the most-active contract since May 4.
Iron ore for immediate delivery rose for the fifth day yesterday, climbing 0.6 percent to $155.10 a ton, according to a price index compiled by The Steel Index Ltd. Trading in iron ore tripled last month from a year earlier on speculation of increased demand this month after week-long holidays in China, the company said.
“Rebar prices are supported by high production costs, as raw material prices are sustained at high levels,” Dang Man, analyst at Maike Futures Co., said in a report today.
The average spot price for rebar was little changed yesterday at 3,790 yuan a ton yesterday, according to data from Beijing Antaike Information Development Co. China’s markets will be closed all of next week for the Lunar New Year holidays.
— With assistance by Feiwen Rong