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Steel reinforcement-bar futures in Shanghai rose for a second day amid speculation demand may improve after China’s Lunar New Year holiday.
Rebar for May delivery gained as much as 0.6 percent to 4,009 yuan ($645) a metric ton on the Shanghai Futures Exchange, and traded at 3,992 yuan at 11:30 a.m. local time.
Baoshan Iron & Steel Co., China’s biggest publicly traded steelmaker, yesterday raised prices for the second time in a month. Demand from builders, the biggest steel users in China, may increase after the new year holiday, which ends Feb. 15, as construction sites resume operations as the weather turns warmer.
“The price hike by big mills boosted investor confidence that demand will pick up after the holiday,” said Cao Yanghui, steel and metal analyst with Nanhua Futures Co. in Hangzhou. “Raw material costs are also underpinning prices.”
Jiangsu Shagang Group Co., the nation’s biggest non-state owned mill, also raised prices this week, Cao said, without elaborating.
The average spot price of rebar added 0.03 percent to 3,731 yuan a ton yesterday, the first gain since Jan. 7, according to data from Beijing Antaike Information Development Co. Spot iron ore at Tianjin port was unchanged at $145.90 a dry ton yesterday, according to The Steel Index Ltd.
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