Rebar Futures Drop to Lowest in a Month as Premium Lures SellersBloomberg News
Steel reinforcement-bar futures in Shanghai closed at the lowest level in almost a month as the premium to spot market prices attracted selling.
Rebar for January delivery on the Shanghai Futures Exchange fell 0.1 percent to 3,732 yuan ($610) a metric ton today, the lowest close for a most-active contract since Aug. 7.
The average spot price of rebar was little changed today at 3,603 yuan a ton, according to Beijing Antaike Information Development Co. Steel mills may increase sales into the futures market as these prices offer a premium to spot levels, said Xia Caijun, an analyst at GF Futures Co. in Guangzhou.
“The discount in the spot market will lead to some correction in the futures,” Xia said.
Iron ore for immediate delivery at Tianjin port fell 0.5 percent yesterday to $138 a dry ton, according to a price index compiled by The Steel Index Ltd.
— With assistance by Feiwen Rong