Dec. 13 (Bloomberg) -- Steel reinforcement-bar futures in Shanghai posted the first weekly drop in four as steel production costs declined on lower prices of raw materials.
Rebar for May delivery on the Shanghai Futures Exchange decreased by 1.4 percent to close at 3,676 yuan ($605) a metric ton. The most-active contract lost 0.7 percent this week.
Iron ore, a key ingredient for steel-making, on the Dalian Commodity Exchange declined, making the biggest weekly decline in seven. The May-delivery contract for coke, another major material, slumped 3.1 percent to close at 1,558 yuan a ton today on the Dalian bourse, down 3.7 percent this week.
“Steel has been more resilient than raw materials this week, but now the weakness in raw-material prices exerted downward pressure on steel,” said Wang Yongliang, an analyst at Beijing Cifco Futures Co. in Tianjin.
Futures for May delivery on the Dalian bourse, the most- active contract, ended 1.7 percent lower at 914 yuan a ton today, bringing this week’s drop to 2.9 percent. Iron ore for immediate delivery at Tianjin port tracked by The Steel Index dropped 0.9 percent to $137.90 a dry ton yesterday.
Rebar for immediate delivery tracked by Beijing Antaike Information Development Co. gained 0.3 percent to 3,568 yuan a ton today.
--Feiwen Rong. Editors: Sungwoo Park, Jarrett Banks