Rebar Falls for Sixth Week on Iron Ore Drop, Chinese EconomyBloomberg News
Steel reinforcement-bar futures in Shanghai retreated for a sixth week after iron ore slumped to a six-month low and on concerns that Chinese demand is weakening.
Rebar for May delivery on the Shanghai Futures Exchange fell 0.3 percent to close at 3,470 yuan ($573) a metric ton. Futures declined 0.6 percent this week.
Iron ore for immediate delivery at the port of Tianjin tracked by The Steel Index retreated 1 percent to $128.30 a dry ton yesterday, the lowest since July 15. China’s factory output and investment growth probably weakened in December, adding to signs the world’s second-largest economy is losing momentum as analysts forecast 2014 expansion at the lowest in 24 years. Factory output and investment data is due Jan. 20.
“There’s increasing concerns that Chinese demand for bulk commodities is weakening as the economy decelerates,” said Wang Yongliang, an analyst at Beijing Cifco Futures Co. in Tianjin.
Iron ore futures for May delivery on the Dalian Commodity Exchange retreated 0.3 percent to close at 876 yuan a ton. Rebar for immediate delivery tracked by Beijing Antaike Information Development Co. fell 0.2 percent to 3,419 yuan a ton, the lowest since July 15.
— With assistance by Feiwen Rong