Rebar Rises for Fourth Day in China on Rising Demand, Iron OreBloomberg News
Steel reinforcement-bar futures in Shanghai advanced for a fourth session, supported by higher raw material costs and as a seasonal increase in construction activity lifted demand for the building material.
The contract for October delivery rose by 0.3 percent to close at 3,847 yuan ($620) a metric ton on the Shanghai Futures Exchange. Futures have lost 3.5 percent this year.
Construction activity is gathering pace as temperatures rise across China, Zheng Ge, analyst at Wanda Futures Co., said by phone from Beijing today. Higher demand for the raw material used in construction may help reduce inventories, he said. Spot iron ore at Tianjin port gained 1.3 percent to $137.60 a dry ton yesterday, according to The Steel Index Ltd.
“There are some traders who want to buy at the moment to prepare for the onset of peak season” Zheng said.
China’s inflation eased more than forecast in March, reducing pressure on policy makers to tighten credit and improving the outlook for industrial commodities including rebar, according to Zheng. The consumer price index rose 2.1 percent last month from a year earlier, compared with the 2.5 percent median estimate in a Bloomberg news survey of 38 economists.
The average spot price of rebar increased 0.2 percent to 3,644 yuan a ton, according to Beijing Antaike Information Development Co.
— With assistance by Feiwen Rong