Rebar Ends Near 9-Month Low on Signs of Slowing Chinese GrowthBloomberg News
Steel reinforcement-bar futures ended near the lowest level in nine months as investors returning from a three-day holiday remained concerned that economic growth is slowing in the world’s biggest steel consumer.
Rebar for delivery in October on the Shanghai Futures Exchange closed little changed at 3,422 yuan ($557) a metric ton today. The contract earlier touched 3,386 yuan, the cheapest since Sept. 7. Futures have dropped 14 percent this year.
Industrial production last month rose a less-than-forecast 9.2 percent from a year earlier and factory-gate prices fell for a 15th month, Chinese government data showed over the weekend. Export gains were at a 10-month low and imports dropped after a crackdown on fake trade invoices while fixed-asset investment growth slowed and new yuan loans declined.
“The numbers haven’t been good,” Wang Yongliang, an analyst at Beijing CIFCO Futures Co., said today by phone from Tianjin. “But rebar prices may fluctuate at this point because prices have come down a lot and some investors may prefer to take profit in their previous short positions for now.”
Iron ore for immediate delivery at Tianjin port in China was unchanged at $110.90 a dry ton yesterday, according to the Steel Index Ltd. The steel making ingredient fell to $110.40 a dry ton on May 31, the lowest since October.
The average spot price for rebar declined 0.9 percent to 3,393 yuan a ton today, the lowest since Sept. 7, according to data from Beijing Antaike Information Development Co.