Steel reinforcement-bar futures fell in Shanghai as rising output from Chinese steel mills last month added to supply of the building material.
Rebar for delivery in October on the Shanghai Futures Exchange fell as much as 0.5 percent to 3,622 yuan ($589) a metric ton before trading at 3,631 yuan at 9:47 a.m. local time. The most-active contract climbed 1.6 percent last week, the first weekly gain since April 12.
China’s daily crude steel output during April 21-30 is estimated to have risen 0.6 percent to 2.13 million tons compared with the daily output in the middle of April, the official Xinhua News Agency said on May 8, citing the China Iron and Steel Association.
“There’s supply-side pressure unless demand comes up faster,” said Li Meng, an analyst at Huatai Great Wall Futures Co., by phone from Shanghai. “If we get good economic data releases today such as industrial production and fixed asset investment, then rebar prices may strengthen.”
The average spot price for rebar fell 0.3 percent to 3,584 yuan a ton on May 10, according to Beijing Antaike Information Development Co. Spot iron ore at Tianjin port fell 0.5 percent to $129.60 a ton on May 10.
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