Jan. 23 (Bloomberg) -- Steel reinforcement-bar futures in Shanghai climbed the most in more than three months amid optimism that demand will pick up as traders replenish inventory and as iron ore prices rose.
Rebar for May delivery on the Shanghai Futures Exchange advanced 1.1 percent to close at 3,463 yuan ($572) a metric ton today, the biggest one-day gain for the contract since Oct. 14.
China’s rebar inventory monitored by Shanghai Steelhome Information Technology Co. was at 5.79 million tons as of Jan. 17, close to a three-year low reached in December. Iron ore futures for May delivery on the Dalian Commodity Exchange rose 3.1 percent to close at 878 yuan a ton.
“The recent slump was overdone and traders will have to restock eventually,” said Zhang Jizhou, a trader at Ningbo Future Import & Export Co. in Shanghai.
Iron ore for immediate delivery gained for the first time in five days yesterday, advancing 0.2 percent to $123.50 a dry ton. Spot rebar tracked by Beijing Antaike Information Development Co. dropped 0.2 percent today to 3,403 yuan a ton, the lowest since July 11.
--Feiwen Rong. Editors: Jarrett Banks, Sungwoo Park