Oct. 11 (Bloomberg) -- Steel reinforcement-bar futures in Shanghai rose for a second week as traders stepped up purchases for winter stockpiling and as raw material prices advanced.
Rebar for delivery in January on the Shanghai Futures Exchange climbed 0.1 percent to close at 3,601 yuan ($589) a metric ton, gaining 0.4 percent this week, the most since the five days through Aug. 16.
Rebar inventory in China fell 1.8 percent to 6.29 million tons as of Sept. 27, the lowest since the week ended Jan. 25, according to Shanghai Steelhome Information Technology Co. Traders increased buying to replenish inventories, said Ren Xinlei, an analyst at Luzheng Futures Co. in Jinan.
“The winter restocking process looks normal, so we remain bullish on the rebar market,” Ren said. “Rebar is also supported by production costs as iron ore and coking coal prices have climbed.”
Iron ore for immediate delivery at Tianjin port rose for a third day, adding 0.9 percent to $133 a dry ton yesterday, according to a price index compiled by The Steel Index Ltd.
The average spot price of rebar was little changed at 3,506 yuan a ton today, according to Beijing Antaike Information Development Co.
--Feiwen Rong. Editors: Jarrett Banks, Brett Miller