Jan. 9 (Bloomberg) -- Steel reinforcement-bar futures in Shanghai slumped to the lowest level in seven months, as a drop in producer prices in China signaled manufacturing weakness.
Rebar for May delivery on the Shanghai Futures Exchange fell 0.4 percent to 3,456 yuan ($571) a metric ton, the lowest close for the contract since its debut in May.
China’s producer prices, a measure of the cost of goods as they leave the factory, extended the longest slide since the 1990s in December, adding to evidence that the world’s second- largest economy weakened last month. The producer-price index fell 1.4 percent from a year before, the 22nd straight drop, the government report showed today.
“The whole manufacturing sector remained weak and output cuts by steel mills weren’t enough to offset the decline in seasonal demand,” said Xia Caijun, an analyst at GF Futures Co. in Guangzhou.
Rebar for immediate delivery tracked by Beijing Antaike Information Development Co. was little changed at 3,450 yuan a ton.
Iron ore for immediate delivery at the port of Tianjin tracked by The Steel Index dropped 1.7 percent to $131.50 a dry ton yesterday. Futures for May delivery on the Dalian Commodity Exchange dropped 0.5 percent to 888 yuan a ton, the lowest close since its debut on Oct. 18.
--Feiwen Rong. Editors: Jarrett Banks, Brett Miller