Steel reinforcement-bar futures in Shanghai traded near the highest in nine months, supported by higher costs for inputs including iron ore.
Rebar for delivery in October was little changed at 4,219 yuan ($677) a metric ton on the Shanghai Futures Exchange at 10:14 a.m. local time. The most-active contract on the bourse rose to the highest since May earlier this week.
Iron ore for immediate delivery rose for the fifth day yesterday by 0.6 percent to $155.10 a ton, according to a price index compiled by The Steel Index Ltd. Trading in iron ore tripled last month from a year earlier on speculation of increased demand this month after week-long holidays in China, the company said.
“Rebar prices are supported by high production costs, as raw material prices are sustained at high levels,” Dang Man, analyst at Maike Futures Co., said in a report today.
The average spot price for rebar was little changed yesterday at 3,790 yuan a ton, according to data from Beijing Antaike Information Development Co. China’s markets will be closed all of next week for the Lunar New Year holidays.
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