Steel reinforcement-bar futures in Shanghai advanced, narrowing a weekly loss, as higher iron ore prices helped offset a weaker demand outlook in winter.
Rebar for May delivery, the most-active contract on the Shanghai Futures Exchange, gained as much as 0.4 percent to 3,636 yuan ($597) a metric ton, before trading at 3,632 yuan at 10:28 a.m. local time. The contract lost 0.8 percent this week.
Iron ore for immediate delivery at Tianjin port tracked by The Steel Index gained 0.4 percent yesterday to $136.60 a dry ton, bringing this week’s gain to 0.5 percent. Demand for rebar usually wanes in winter as construction slows during the colder months, according to Jiang Yuying, an analyst at Chengdu Brilliant Futures Co. in Shanghai.
“There are some bargain-hunting buying in rebar as higher production costs are supporting prices,” said Jiang. “The upside might be limited due to the lack of positive news from policy makers and weak seasonality.”
The Communist Party’s senior leaders concluded a policy meeting this week with a communique stating that markets will become “decisive” in allocating resources while the state remains “dominant” in the economy, without providing specifics.
Iron ore for May delivery on the Dalian Commodity Exchange, rose 0.2 percent to 939 yuan.
Source:- businessweek.com
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