Aug. 30 (Bloomberg) -- Steel reinforcement-bar futures in Shanghai rose for a third month, supported by an inventory draw- down and higher prices of iron ore.
Rebar for January delivery closed little changed at 3,753 yuan ($613) a metric ton. Futures rose 3 percent this month, trimming this year’s drop to 5.9 percent.
Iron ore for immediate delivery at Tianjin port was little changed yesterday at $138.30 a dry ton, bringing this month’s gain to 6.5 percent, according to a price index compiled by The Steel Index Ltd. Rebar inventory in China fell by 3.4 percent this month to 6.6 million tons on Aug. 23, according to Shanghai Steelhome Information Technology Co.
“Rebar’s fundamentals are turning positive,” said Dang Man, analyst at Maike Futures Co. in Xi’an. “The market may face some correction due to Syria and uncertainties in other financial markets, but the demand outlook has improved with more construction.”
The average spot price of rebar fell 0.2 percent to 3,598 yuan a ton today, according to Beijing Antaike Information Development Co.
--Feiwen Rong. Editors: Jarrett Banks, Brett Miller