Steel reinforcement-bar futures climbed the most in almost three weeks on speculation that data will show China’s economy strengthened, boosting demand for the material used in construction and housing.
Rebar for May delivery advanced 2 percent to 4,004 yuan ($643) a metric ton on the Shanghai Futures Exchange, the biggest gain at close for the most-active contract since Dec. 25. The alloy tumbled 2.4 percent on Jan. 11, the most since November, on speculation accelerating inflation would limit room for easing to support a recovery.
China’s economic growth may have recovered to 7.8 percent in the fourth quarter from a year earlier, after sliding to a three-year low of 7.4 percent in the previous quarter, according to the median estimate in a Bloomberg News survey before the data on Jan. 18.
“The market generally believes positive economic data will come out of the release and that boosted confidence,” Dang Man, analyst at Maike Futures Co., said by phone from Shanghai.
The average spot price for rebar fell 0.3 percent to 3,739 yuan a ton today, according to data from Beijing Antaike Information Development Co. Spot iron ore at Tianjin port dropped 2.1 percent to $154.90 a dry ton on Jan. 11, according to The Steel Index Ltd.
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