Rebar Rises First Time in Three Days on Iron Ore Price IncreaseBloomberg News
Steel reinforcement-bar futures rose for the first time in three days as iron ore prices recovered from the lowest level in more than five months.
Rebar for delivery in October on the Shanghai Futures Exchange rose 0.1 percent to close at 3,594 yuan ($586) a metric ton. The contract lost 0.9 percent in the previous two days.
Ore with 62 percent iron content for immediate delivery to the Tianjin port in China gained 0.5 percent to $123.60 a dry ton yesterday, the first rise in nine days. Ore touched $123 a ton the previous day, the lowest since Dec. 7, according to an index compiled by The Steel Index Ltd.
“The cost of production is about the only support the rebar market has now,” Li Jinlu, an analyst at Yongan Futures Co., said by phone from Hangzhou. “We expect to see a bit of cutback on production, which is supportive of rebar prices.”
Rebar inventory in China tracked by Shanghai Steelhome Information Technology Co. fell to 8.64 million tons on May 17, the sixth weekly decline and the lowest level since Feb. 8.
The average spot price for rebar was little changed at 3,550 yuan a ton today, according to Beijing Antaike Information Development Co.