Dec. 16 (Bloomberg) -- Steel reinforcement-bar futures in Shanghai were little changed as an unexpected decline in a Chinese manufacturing index countered production cuts at the nation’s steel mills.
Rebar for May delivery on the Shanghai Futures Exchange closed 0.1 percent lower at 3,671 yuan ($605) a metric ton, after earlier gaining and losing at least 0.2 percent. It lost 0.7 percent last week, the first drop in four weeks.
The preliminary reading of 50.5 for a Purchasing Managers’ Index released today by HSBC Holdings Plc and Markit Economics compares with a final figure of 50.8 in November and the 50.9 median estimate in a Bloomberg News survey of 11 analysts. China’s crude steel production dropped to 60.88 million tons in November, the lowest this year, from 65.08 million in October, the National Bureau of Statistics said last week.
“The economic uncertainty kept the market jittery but the recent good news from the supply side kept the downside limited,” said Yu Yang, an analyst at Shenyin & Wanguo Futures Co. in Shanghai.
Iron ore, a key ingredient for steel-making, gained 0.4 percent on the Dalian Commodity Exchange to close at 918 yuan a ton, rising for the first time in five days. Iron ore for immediate delivery at the port of Tianjin tracked by The Steel Index dropped 1.4 percent to $136 a dry ton on Dec. 13.
Rebar for immediate delivery tracked by Beijing Antaike Information Development Co. was little changed today at 3,569 yuan a ton.
--Feiwen Rong. Editors: Alexander Kwiatkowski, Sungwoo Park