Steel reinforcement-bar futures in Shanghai advanced for a fourth session, supported by higher raw material costs and as a seasonal increase in construction activity lifted demand for the building material.
The contract for October delivery rose as much as 0.7 percent to 3,861 yuan ($622) a metric ton on the Shanghai Futures Exchange, before trading at 3,845 yuan at 10:30 a.m. Futures have lost 3.6 percent this year.
Construction activity is gathering pace as temperatures rise across China, Zheng Ge, analyst at Wanda Futures Co., said by phone from Beijing today. Higher demand for the raw material used in construction may help reduce inventories, he said. Spot iron ore at Tianjin port gained 1.3 percent to $137.60 a dry ton yesterday, according to The Steel Index Ltd.
“There are some traders who want to buy at the moment to prepare for the onset of peak season” Zheng said. “There’s also some early sign of recovery in risk appetite from investors, which may benefit industrial commodities such as rebar in the short term.”
The average spot price of rebar increased 0.2 percent to 3,638 yuan a ton yesterday, according to Beijing Antaike Information Development Co.
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