Rebar Extends Third Monthly Gain as China Manufacturing RecoversBloomberg News
Steel reinforcement-bar futures rose in Shanghai, extending a third straight monthly gain, after gauges of manufacturing for China improved.
Rebar for January delivery rose 0.9 percent to 3,787 yuan ($619) a metric ton on Shanghai Futures Exchange, the biggest gain in a week. Futures rose 3 percent last month, paring this year’s drop to 5 percent.
The Purchasing Managers’ Index was at 51.0, the highest in 16 months, data by the National Bureau of Statistics and China Federation of Logistics and Purchasing showed yesterday. A separate manufacturing PMI released today by HSBC Holdings Plc and Markit Economics rose to 50.1 last month from 47.7 in July, the biggest gain in three years.
“The stronger PMI provided a boost to rebar today,” said Ren Xinlei, an analyst at Luzheng Futures Co. in Jinan. “The physical market is quite bullish, which looks to last through the next quarter.”
Rebar inventory fell 0.4 percent to 6.59 million tons in the week through Aug. 30, the lowest level since Jan. 25, according to Shanghai Steelhome Information Technology Co.
The average spot price of rebar was little changed at 3,596 yuan a ton today, according to Beijing Antaike Information Development Co.
Iron ore for immediate delivery at Tianjin port fell 0.4 percent to $137.70 a dry ton on Aug. 30, according to a price index compiled by The Steel Index Ltd.
— With assistance by William Bi