Rebar Trades Near Lowest in Four Months as Iron Ore Declines
Author:Network sources Source:Network sources Date:2013-04-27

Steel reinforcement-bar futures in Shanghai traded near the lowest level in more than four months, as iron ore prices retreated to the lowest since March 21 and high output weighed on the market.

The contract for October delivery on the Shanghai Futures Exchange fell as much as 0.6 percent to 3,625 yuan ($587) a metric ton and was at 3,632 yuan at 10:09 a.m. local time. Futures touched 3,578 yuan yesterday, the lowest since Dec. 5.

Spot iron ore at Tianjin port fell 1 percent to $135.10 a dry ton yesterday, Steel Index Ltd. data show. The China Iron and Steel Association will release its production estimate tomorrow for the mid-April period. Output should have increased, Dang Man, an analyst at Maike Futures Co., said by phone from Xi'an today.

"The market is still quite bearish given the high output and declining raw-material prices," Dang said. "Futures could test the 3,500 yuan support level in the next few days."

China's daily crude steel output in early April was estimated to have risen 2.5 percent from late March, analyst Hu Yanping said on April 18.

The average spot price for rebar dropped 0.2 percent to 3,570 yuan a ton yesterday, according to the Beijing Antaike Information Development Co.

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