Sept. 10 (Bloomberg) -- Steel reinforcement-bar futures in Shanghai retreated from a one-week high as Chinese steel mills increased production of the building material.
Rebar for delivery in January on the Shanghai Futures Exchange declined 0.4 percent to 3,736 yuan ($610) a metric ton today. The contract closed at 3,752 yuan yesterday, the highest level since Sept. 2.
China’s crude steel output jumped to 66.3 million tons in August from 65.47 million tons in July, the National Bureau of Statistics said today. Production in the first eight months of this year rose 7.8 percent from a year earlier to 521.8 million tons, it said.
“Steel mills may continue to ramp up production because their profit margins have improved lately,” said Wang Yongliang, an analyst at Beijing Cifco Futures Co. in Tianjin.
The average spot price of rebar was little changed at 3,758 yuan a ton today, according to Beijing Antaike Information Development Co.
Iron ore for immediate delivery at Tianjin port rose for the first time in four days, adding 0.5 percent to $134.80 a dry ton yesterday, according to a price index compiled by The Steel Index Ltd.
--Feiwen Rong. Editors: Sungwoo Park, Ovais Subhani