Aug. 26 (Bloomberg) -- Steel reinforcement-bar futures fell from the highest level in more than a week on concern that supply in China is outpacing demand after inventory rose for the first time in almost five months.
Rebar for January delivery retreated 0.1 percent to 3,813 yuan ($623) a metric ton on Shanghai Futures Exchange. The most- active contract earlier climbed to 3,848 yuan, the highest since Aug. 14. Futures have gained 4.6 percent this month.
Rebar inventory in China on Aug. 23 rose 0.1 percent to 6.6 million tons, the first climb since April 5, according to Shanghai Steelhome Information Technology Co. Daily rebar output in July rose 0.3 percent from June to a record 570,000 tons, according to a report by Shenhua Futures Co.
“The relatively high output and a falling use-to-stock ratio are bearish for rebar,” said Wu Zhili, an analyst at Shenhua Futures Co. in Shenzhen.
The average spot price of rebar fell for a fourth day, dropping 0.1 percent to 3,606 yuan a ton, according to Beijing Antaike Information Development Co. Iron ore for immediate delivery at Tianjin port gained 0.7 percent to $138.60 a dry ton on Aug. 23, according to a price index compiled by The Steel Index Ltd.
--William Bi. Editors: Jarrett Banks, Sungwoo Park