Sept. 23 (Bloomberg) -- Steel reinforcement-bar futures rose the most in two weeks in Shanghai after a Chinese manufacturing gauge reached a six-month peak.
Rebar for delivery in January on the Shanghai Futures Exchange erased losses of 0.6 percent and closed 0.6 percent higher at 3,655 yuan ($597) a metric ton, the largest gain since Sept. 9. On Sept. 18, the last session before a two-day holiday, futures closed at 3,633 yuan, the lowest since July 30.
The preliminary reading of 51.2 for a Purchasing Managers’ Index released today by HSBC Holdings Plc and Markit Economics compared with a median estimate of 50.9 from a Bloomberg News survey. The gauge was 50.1 in August, the first above-50 reading since April. A number above 50 indicates an expansion.
“The positive PMI touched off a rebound in rebar, boosting an optimism in the market,” said Wu Zhili, an analyst at Shenhua Futures Co. in Shenzhen.
The average spot price of rebar fell 0.3 percent to 3,516 yuan a ton today, dropping for an 11th straight session, according to Beijing Antaike Information Development Co.
--William Bi and Alfred Cang. Editors: Brett Miller, Sungwoo Park