Rebar Advances Amid Optimism Seasonal Demand Will IncreaseBloomberg News
Steel reinforcement-bar futures gained amid expectations that seasonal demand will pick up in the spring, helping traders reduce inventory after prices declined in the past four weeks.
Rebar for delivery in October on the Shanghai Futures Exchange rose 0.4 percent to close at 3,843 yuan ($618) a metric ton. The contract dropped to a three-month low of 3,741 yuan a ton on March 14 and has declined 3.6 percent this year.
“Demand for building material is expected to rise in the next two months as developers showed no sign of cutting back on new housing starts and infrastructure construction gathers traction,” Luo Wei, an analyst at China International Capital Corp., said by phone from Shanghai yesterday.
The average spot price of rebar retreated 0.2 percent today to 3,686 yuan a ton, according to data from Beijing Antaike Information Development Co. Raw-material iron ore for immediate delivery was unchanged at $134.60 a ton yesterday, according to data compiled by The Steel Index Ltd.