Dec. 27 (Bloomberg) -- Steel reinforcement-bar futures rose in China, trimming a third weekly loss, after a report that Tangshang city vowed to boost measures to curb output and reduce emissions.
Rebar for May delivery on the Shanghai Futures Exchange rose 0.2 percent to 3,612 yuan ($595). They lost 0.4 percent for the week.
Tangshang accounts for half of all steel-making capacity in Hebei province, the country’s biggest producer of the material. It will take the “toughest measures in history” to retire old blast furnaces, the 21st Century Business Herald reported today, citing city officials it didn’t identify. The province drafted a plan to cut capacity by 67.3 million tons, the newspaper said.
“It looks more certain that the government is finally serious about curbing the steel industry’s overcapacity,” said Wu Zhili, a Shenzhen-based analyst at Shenhua Futures Co. “The market is reacting positively.”
Iron ore for May delivery on the Dalian Commodity Exchange rose 1.2 percent to 907 yuan a ton. The raw material for immediate delivery at the port of Tianjin tracked by The Steel Index was little changed at $132.10 a dry ton yesterday.
Rebar for immediate delivery tracked by Beijing Antaike Information Development Co. lost 1.5 percent to 3,468 yuan a ton yesterday.
--William Bi. Editor: Brett Miller