Rebar futures prices rise

China’s rebar futures prices yesterday surged to a four-year high as the government cut overcapacity and halt output of low-quality steel.

The most traded rebar contract for October delivery rose 4.71 percent to 3,733 yuan (US$555) per ton yesterday, the highest since August 2013. Iron ore, a raw material for steel products, soared 7.94 percent to close by the daily limit of 8 percent at 571 yuan per ton.

The price rise occurred after the China Iron and Steel Industry Association said it will “spare no efforts to ensure the overcapacity cut, especially to prevent the revival of ‘ditiaogang’ low-quality steel made of scrap metal” as required by the National Development and Reform Commission.