Steel reinforcement-bar futures climbed to the highest in almost nine months after data showed China’s service industries grew at the fastest pace since August.
Rebar for delivery in May gained as much as 0.7 percent to 4,197 yuan ($674) a metric ton on the Shanghai Futures Exchange, the highest level since May 10, 2012. The contract traded at 4,183 yuan at 10:37 a.m. local time.
China’s services industries rose as gains in retailing and construction aided government efforts to drive a recovery. The non-manufacturing Purchasing Managers’ Index climbed to 56.2 in January from 56.1 in December, the National Bureau of Statistics and China Federation of Logistics & Purchasing said in a statement yesterday. A reading above 50 indicates expansion.
“The data has shown that the demand is improving and that companies’ confidence in the economy will strengthen,” Fang Guodong, an analyst at Wanda Futures Co., said in a report today.
Spot iron ore at Tianjin port rose for a third day on Feb. 1, advancing 0.5 percent to $153.20 a dry ton, according to The Steel Index Ltd. The average spot price for rebar was little changed at 3,755 yuan a ton on Feb. 1, according to data from Beijing Antaike Information Development Co.
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