Steel reinforcement-bar futures in Shanghai fell to near the lowest level in more than two months amid high inventories in China.
Rebar for delivery in October on the Shanghai Futures Exchange dropped 0.1 percent to 3,932 yuan ($632) a metric ton. The most-active contract on March 4 closed at 3,905 yuan, the lowest level since Dec. 27.
Inventory jumped 79 percent this year through March 1, according to Shanghai Steelhome Information. China’s daily crude steel output in late-February was estimated to rise by 1.4 percent to 2.03 million tons compared with daily output in mid- February, according to industry consultancy Custeel.com.
“Steel mills are increasing production that will add to the supply pressure as the inventory is already high,” Zhaojin Futures Co. said in a report.
The average spot price for rebar fell 0.2 percent today to 3,764 yuan a ton, according to data from Beijing Antaike Information Development Co. Iron ore for immediate delivery rose 0.4 percent to $145.80 a ton yesterday, according to data compiled by The Steel Index Ltd.
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