March 4 (Bloomberg) -- Steel reinforcement-bar futures fell for a second day, to the lowest level in more than 10 weeks as inventories in China climbed for a ninth week, adding to concern that the market is oversupplied.
Rebar for delivery in October on the Shanghai Futures Exchange dropped by 2.9 percent to close at 3,905 yuan ($627) a metric ton, the lowest close since Dec. 27 for a most-active contract. Futures fell 1.8 percent last month, the first drop since November.
Inventory jumped 79 percent this year through March 1, according to Shanghai Steelhome Information. China is holding the annual gathering of the National People’s Congress this week to mark the once-in-a-decade leadership transition in Beijing. Outgoing Premier Wen Jiabao will outline economic policies as the government grapples with sustaining a recovery from the slowest growth in 13 years without triggering a resurgence in consumer and asset-price inflation.
“If the policies remain stable with no big stimulus post the National People’s Congress, as our base case is, we expect finished steel prices to fall due to the excessive inventory at traders,” Frankie Zhu, analyst at Credit Suisse Group AG, said in a report e-mailed today.
The average spot price for rebar was little changed at 3,789 yuan a ton today, according to data from Beijing Antaike Information Development Co. Iron ore for immediate delivery fell 0.7 percent to $150.60 a ton on March 1, according to data compiled by The Steel Index Ltd.
--Feiwen Rong. Editors: Jarrett Banks, Brett Miller