Oct. 17 (Bloomberg) -- Steel reinforcement-bar futures in Shanghai fell for a third day as an increase in inventory stoked oversupply concerns ahead of the winter low-demand season.
Rebar for delivery in January on the Shanghai Futures Exchange fell 0.3 percent to close at 3,558 yuan ($584) a metric ton, the lowest level for a most-active contract since July 1.
Inventory in China gained to 6.3 million tons as of Oct. 11, the first expansion in five weeks, according to Shanghai Steelhome Information Technology Co. Traders discounted news that China will eliminate 48 million tons of iron and steel- making capacity in 2014 as it “is a long-term process” and the market “is still in oversupply,” said Helen Lau, an analyst at UOB Kay Hian Ltd. in Hong Kong.
“With winter fast approaching the supply concern is on everybody’s mind,” said Wu Zhili, an analyst at Shenhua Futures Co. in Shenzhen.
The spot price of rebar fell by 0.2 percent today to 3,506 yuan a ton, according to Beijing Antaike Information Development Co.
Iron ore for immediate delivery at Tianjin port was little changed yesterday at $133.70 a dry ton, according to a price index compiled by The Steel Index Ltd.
--Feiwen Rong. Editors: Jarrett Banks, Thomas Kutty Abraham