Rebar Little Changed as Investors Trim Positions Before FestivalBloomberg News
Steel reinforcement-bar futures in Shanghai were little changed as investors reduced the number of contracts they hold before markets in China close for a three-day festival next week.
Rebar for delivery in October on the Shanghai Futures Exchange ended at 3,482 yuan ($568) a metric ton today after swinging between 3,463 and 3,490 yuan. Futures fell for a fourth month in May.
Bourse data showed open interest on the most-actively traded contract declining for a third day today. China’s financial markets are closed for the Dragon Boat Festival Monday through Wednesday before resuming trade on Thursday.
“Investors will continue to reduce their positions before the holiday because the exchange usually raises the margin requirements as a risk precaution before long holidays,” Ren Xinlei, analyst at Luzheng Futures Co., said from Jinan today. “Rebar prices will probably fluctuate in a tight range.”
Iron ore for immediate delivery at Tianjin port in China rose for the second day yesterday, advancing 4.2 percent to $116.60 a dry ton, according to the Steel Index Ltd. The steelmaking ingredient fell to $110.40 a dry ton on May 31, the lowest since October.
The average spot price for rebar was little changed at 3,444 yuan a ton today, according to data from Beijing Antaike Information Development Co.