Steel reinforcement-bar futures posted the biggest weekly climb in more than two years on expectations a strengthening Chinese economy will boost demand.
Rebar for May delivery rose 1.7 percent to close at 3,656 yuan ($587) a metric ton on the Shanghai Futures Exchange. Futures climbed 4.6 percent this week, the biggest such gain since the week ended Oct. 15, 2010.
There is growing “enthusiasm” for urbanization projects in China’s southwest after the country’s leaders signaled there may be more pro-growth policies, Shenyin Wanguo Futures Co. said in a report today.
“If you look at daily production right now, it’s higher than last year,” Shenyin’s analyst Yu Yang said by phone from Shanghai. “We find steel companies are rather firm on their prices as they anticipate stronger demand,” she said.
Production nationwide has averaged about 1.9 million tons per day since October, compared with 1.6 million tons last year, Yu said, citing her analysis. Steelmakers enjoy some profits now and expect continued improvement, she said.
The average spot price of rebar, used in housing construction and infrastructure projects, fell 0.1 percent to 3,548 yuan a ton today, according to data from Beijing Antaike Information Development Co. (4709) Spot iron ore advanced 0.4 percent to $118.40 a dry ton at Tianjin port yesterday, according to data from The Steel Index Ltd.
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