Steel reinforcement-bar futures in China climbed for a second day as falling domestic stockpiles fueled optimism that demand is increasing in the world’s biggest consumer of the material used in construction.
The contract for October delivery on the Shanghai Futures Exchange advanced as much as 1.9 percent to 3,650 yuan ($593) a metric ton, and traded at 3,627 yuan a ton at 11:24 a.m. in Beijing, extending a 1.1 percent jump on May 3.
Rebar inventory in China fell for a sixth week to 9.39 million tons as of May 3, Huatai Great Wall Futures Co. said in a report today. The pace of demand for rebar is quickening as some property developers accelerate projects, it said.
“Futures will probably extend a recovery spurred by improving demand,” Li Meng, Shanghai-based analyst at Huatai Great Wall, said by phone from Shanghai. The production of rebar has slowed relative to demand, he said.
Spot iron ore at Tianjin port dropped 1 percent to $128.10 a dry ton on May 3, Steel Index Ltd. data show. The average spot price for rebar was little changed at 3,571 yuan on the same day, said the Beijing Antaike Information Development Co.
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