Steel reinforcement-bar futures in Shanghai rose for the first time in six days after China’s official manufacturing index unexpectedly accelerated in May.
Rebar for delivery in October on the Shanghai Futures Exchange rose as much as 1.9 percent to 3,480 yuan ($568) a metric ton and was at 3,450 at 10:15 a.m. local time. Futures fell for a fourth month in May, dropping 5.1 percent.
A Purchasing Managers’ Index rose to 50.8 from 50.6 in April, the National Bureau of Statistics and China Federation of Logistics and Purchasing said on June 1. That was higher than all estimates in a Bloomberg News survey of 30 analysts and compares with the median projection of 50, which marks the dividing line between expansion and contraction.
“Rebar’s rally today is a response to the better-than-expected economic number,” Xia Caijun, an analyst at GF Futures Co., said by phone from Guangzhou today.
A separate gauge released today by HSBC Holdings Plc and Markit Economics showed a reading of 49.2, compared with a preliminary reading of 49.6 on May 23.
Iron ore for immediate delivery at the Tianjin port in China fell 1.1 percent to $110.40 a dry ton on May 31, the lowest since October, according to the Steel Index Ltd.
Iron ore prices will be supported around $110 a ton on expectations the market balance will remain tight over the next 18 months, CIMB Group Holdings Bhd said in a May 31 report.
The average spot price for rebar fell 0.4 percent to 3,469 yuan a ton on May 31, the lowest since September, according to data from Beijing Antaike Information Development Co.
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