Steel reinforcement-bar futures in Shanghai rose for a second day after the contract’s premium to spot prices narrowed.
Rebar for delivery in October on the Shanghai Futures Exchange advanced as much as 0.7 percent to 3,966 yuan ($637) a metric ton and traded at 3,941 yuan at 10:15 a.m. local time. The average spot price for rebar fell 0.3 percent yesterday to 3,776 yuan a ton, according to data from Beijing Antaike Information Development Co.
“The rebar futures premium over the spot market price has narrowed recently, a bullish sign which may boost users’ purchases as they usually stock up amid anticipation for the rising consumption in March and April,” Cao Yanghui and Wang Tieshan, analysts at Nanhua Futures Co., said in a report.
The premium was 163 yuan at yesterday’s close for the October contract versus the spot price, compared with 263 yuan at the end of last month.
Iron ore for immediate delivery fell 2.4 percent to $145.20 a ton yesterday, according to data compiled by The Steel Index Ltd.
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