Sept. 16 (Bloomberg) -- Steel reinforcement-bar futures in Shanghai dropped for a fifth day, slipping to the lowest level in more than six weeks, on concern that increased production by steel mills will weigh on prices.
Rebar for delivery in January on the Shanghai Futures Exchange fell 0.3 percent to close at 3,647 yuan ($596) a metric ton, the lowest for a most-active contract since Aug. 1. The building material lost 1.8 last week.
China’s crude steel output advanced 1.3 percent in August as profitability rose, with production jumping to 66.3 million tons from 65.47 million tons in July, according to the National Bureau of Statistics.
“The supply-side pressure is weighing on the market despite the peak consumption season now,” said Ren Xinlei, an analyst at Luzheng Futures Co. in Jinan. “Rebar is likely to consolidate around 3,620 yuan and 3,650 yuan.”
The average spot price of rebar retreated 0.4 percent to 3,547 yuan a ton today, dropping for an eighth day, the worst such run since June, according to Beijing Antaike Information Development Co.
Iron ore for immediate delivery at Tianjin port fell 0.5 percent to $134.50 a dry ton on Sept. 13, according to a price index compiled by The Steel Index Ltd. The steel-making ingredient reached a five-month high at $142.80 on Aug. 14.
--Feiwen Rong. Editors: Sungwoo Park, Ovais Subhani