Steel reinforcement-bar futures in Shanghai traded near a nine month low as investors remained concerned that economic growth is slowing in the world’s biggest steel consumer.
Rebar for delivery in October on the Shanghai Futures Exchange declined as much as 1.2 percent to 3,382 yuan ($551) a metric ton, the lowest since Sept. 7. The contract traded at 3,420 yuan at 11:16 a.m. Futures are little changed in a holiday-shortened week.
Chinese stocks tumbled yesterday after a three-day holiday as government reports showed industrial production and exports trailed economists’ estimates in May. The average spot price for rebar declined 0.9 percent to 3,393 yuan a ton yesterday, the lowest since Sept. 7, according to data from Beijing Antaike Information Development Co.
“A sense of weakness is permeating the spot market, reflecting bearish sentiment among traders over the outlook for the building material,” Huang Fulong, analyst at Citic Securities Futures Co., said by phone from Shenzhen today.
Iron ore for immediate delivery at Tianjin port in China gained 1 percent yesterday to $112 a dry ton, according to The Steel Index Ltd. The steel making ingredient fell to $110.40 a dry ton on May 31, the lowest since October.
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