Monday, July 11,
Re-bar futures on the Shanghai Futures Exchange has hit a four-week high and the most active October rebar contract got closed at 4,852 yuan ($750)/MT on Monday i.e. up by 44 yuan or 0.9% from last Friday.
The hike seen in Re-bar futures was in reaction to the list of companies published by China’s Ministry of Industry and Information Technology. The list includes 2,255 companies that should close down before the end of 2011 on having outdated facilities.
Out of all, 96 steel mills belonging to Shougang, Tangshan Guofeng Steel and Bayi Steel which have been asked to close iron-making blast furnaces smaller than 400 cu metres.
According to traders, “This list has supported market sentiment and rebar prices went up today. Billet and iron ore prices are strong. Stocks are falling and market expects Baosteel to keep its August prices unchanged. So all these factors combined together supported rebar prices today”
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