Rebar Extends Monthly Gain as China Manufacturing StrengthensBloomberg News
Steel reinforcement-bar futures extended a second monthly gain after China’s manufacturing unexpectedly strengthened in July, suggesting a slowdown in the second-largest economy may be stabilizing.
Rebar for January delivery rose 0.1 percent to close at 3,647 yuan ($595) a metric ton on the Shanghai Futures Exchange. The most-active contract gained 6.7 percent in June and July.
The Purchasing Managers’ Index was at 50.3, the National Bureau of Statistics and China Federation of Logistics and Purchasing said today in Beijing. That compared with the 49.8 median forecast of 35 analysts in a Bloomberg News survey and June’s 50.1 level. Readings above 50 indicate expansion.
“While the economic growth has moderated, steel demand in property and infrastructure is still pretty good,” said Wu Zhili, Shenzhen-based analyst at Shenhua Futures Co.
The average spot price for rebar fell 0.2 percent to 3,448 yuan a ton, according to Beijing Antaike Information Development Co. Iron ore for immediate delivery at Tianjin port fell 0.8 percent to $129.90 a dry ton yesterday, The Steel Index Ltd. data showed.