Dec. 23 (Bloomberg) -- Steel reinforcement-bar futures dropped for an eighth day, slipping to a four-week low, as iron ore prices fell and traders’ inventory in China increased.
Rebar for May delivery on the Shanghai Futures Exchange retreated by 0.4 percent to close at 3,612 yuan ($595) a metric ton, the lowest level since Nov. 21.
Rebar inventory monitored by Shanghai Steelhome Information Technology Co. increased 1.9 percent last week to 5.09 million tons, the first gain since the week ended Oct. 11. Raw-material iron ore for May delivery on the Dalian Commodity Exchange slumped as much as 2.2 percent to 885 yuan a ton, the lowest since the contract’s debut Oct. 18, and ended at 893 yuan today.
“Rebar’s weakness stemmed from the lower iron ore price,” said Yu Yang, an analyst at Shenyin & Wanguo Futures Co. in Shanghai. “The gain in inventory also added to concern” that demand is weakening, she said.
Iron ore for immediate delivery at the port of Tianjin tracked by The Steel Index was unchanged on Dec. 20 at $132.70 a dry ton, the lowest since Oct. 31.
Rebar for immediate delivery tracked by Beijing Antaike Information Development Co. declined 0.3 percent to 3,544 yuan a ton on Dec. 20.
--Feiwen Rong. Editors: Sungwoo Park, Alexander Kwiatkowski