Jan. 30 (Bloomberg) -- Steel reinforcement-bar futures advanced to the highest level in more than six months amid optimism that demand is rising in China as the Shanghai stock market headed for a second monthly gain.
Rebar for delivery in May advanced by 1.1 percent to close at 4,114 yuan ($661) a metric ton on the Shanghai Futures Exchange today. The contract reached 4,131 yuan earlier today, the highest price since June.
China’s Shanghai Composite Index, the benchmark of the local equity market, climbed to 2,358.98 yesterday, extending its advance since Dec. 3 to 20 percent, a threshold signaling a bull market to some investors. The gauge rose 1 percent today.
“The market overlooked the thin demand in the spot market and chose to focus on the bullish sentiment from the stock market,” Ruida Futures Co. said in a report today.
Spot iron ore at Tianjin port was unchanged at $148.40 a dry ton yesterday, according to The Steel Index Ltd. The average spot price for rebar was up 0.3 percent today at 3,743 yuan a ton, according to data from Beijing Antaike Information Development Co.
--Feiwen Rong. Editor: Brett Miller