Rebar Near Lowest in Five Months on Output, Iron Ore Bear MarketBloomberg News
Steel reinforcement-bar futures ended near the lowest level in more than five months amid rising output in China and as iron ore fell into a bear market.
Rebar for delivery in October on the Shanghai Futures Exchange fell 0.1 percent to close at 3,549 ($577) a metric ton today. The contract earlier touched 3,526 yuan, the lowest since Dec. 3. Futures have lost 11 percent this year.
China’s crude steel output rose to 65.65 million tons in April, up 6.8 percent from a year earlier, data from the National Bureau of Statistics showed today. Crude steel production in the first four months increased 8.4 percent from a year ago to 258.2 million tons, according to the data.
“April was the second-highest level of output on record, so the supply is a concern as mills don’t want to cut back on production,” Cai Yuehui, an analyst at Ruida Futures Co., said by phone from Fujian.
Iron ore slumped into a bear market on concern that slowing economic growth in China will reduce demand as global supplies increase. Ore with 62 percent iron content delivered to the Chinese port of Tianjin fell 1.3 percent yesterday to $126.40 a ton, down 20 percent from since Feb. 20 when it reached a 16-month high of $158.90.
The average spot price for rebar fell 0.3 percent to 3,568 yuan a ton today, according to Beijing Antaike Information Development Co.