Rebar in Shanghai Drops to Two-Month Low as Inventory Climbs

Dec 30, 2013 3:43 am ET

Dec. 30 (Bloomberg) -- Steel reinforcement-bar futures fell to the lowest in more than two months after inventory rose for a second week amid rising supply.

Rebar for May delivery on the Shanghai Futures Exchange declined 1.1 percent to 3,573 yuan ($589) a metric ton, the lowest close for a most-active contract since Oct. 18.

Inventory for the building material rose 1.5 percent to 5.2 million tons in the week that ended Dec. 27, according to data by Shanghai Steelhome Information Technology Co. Daily crude steel output in mid-December gained to 2.01 million tons, according to data from the China Iron & Steel Association.

“Inventory continues to rise as construction slows in winter, and that will weigh on the market for the next couple of months,” said Shanghai-based analyst Xia Junyan of Wanda Futures Co.

Iron ore for May delivery on the Dalian Commodity Exchange rose 0.4 percent to 911 yuan a ton. The contract for immediate delivery at the port of Tianjin tracked by The Steel Index gained 1.4 percent to $134 a dry ton on Dec. 27.

Rebar for immediate delivery tracked by Beijing Antaike Information Development Co. lost 0.2 percent to 3,499 yuan a ton.

--William Bi. Editors: Sungwoo Park, Thomas Kutty Abraham