Rebar Gains on Stock Market Rally as China Returns From HolidayBloomberg News
Steel reinforcement-bar futures climbed as China’s stock market rallied and on expectations that traders may start restocking inventories after a week-long holiday.
Rebar for delivery in January on the Shanghai Futures Exchange rose 0.3 percent to 3,599 yuan ($588) a metric ton, the highest level at close for a most-active contract since Sept. 26.
The Shanghai Composite Index rose the most in two weeks as retailers and property developers advanced on increased sales during the holiday. Rebar inventory in China declined 1.8 percent to 6.29 million tons as of Sept. 27, the lowest since the week ended Jan. 25, according to Shanghai Steelhome Information Technology Co.
“A restocking process may start soon, which should help stabilize demand,” said Huang Fulong, an analyst at Citic Securities Futures Co. in Shenzhen.
Iron ore for immediate delivery at Tianjin port was at $131.40 a dry ton on Sept. 30 before the holiday, according to a price index compiled by The Steel Index Ltd. The average spot price of rebar was little changed today at 3,491 yuan a ton, according to Beijing Antaike Information Development Co.