Steel reinforcement-bar futures in Shanghai fell to the lowest level in almost five months as a decline in the price of iron ore and consistently high output from local mills pressured the market.
The contract for October delivery on the Shanghai Futures Exchange lost as much as 1.9 percent to 3,533 yuan ($574) a metric ton today, the cheapest since Dec. 3, and was at 3,551 yuan at 10:11 a.m. local time. Futures, which reopened after a three-day holiday, lost 6.2 percent in the previous two weeks.
Spot iron ore at Tianjin port was reported at $134.10 a dry ton on April 30, the lowest since March 20, Steel Index Ltd. data show. China’s daily crude steel output nationwide in mid- April was estimated at 2.116 million tons, up 52,100 tons a day from same period a month earlier, according to Custeel.com, which cited data from the China Iron & Steel Association.
“The lower iron ore price is pressuring the market, while Chinese mills’ output remained at a high level,” Li Meng, analyst at Huatai Changcheng Futures Co., said by phone from Shanghai today. The average spot price for rebar was up 0.2 percent at 3,574 yuan a ton on April 26, according to the Beijing Antaike Information Development Co.
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