rebar, iron ore up again july 15

the market cannot keep ignoring the increasing price of io -fmg has to jump at some stage:

Shanghai rebar gains for 4th day in five on firm demand, China GDP
Mon Jul 15, 2013 10:03am IST


* China Q2 GDP growth at 7.5 pct, in line with estimates
* China steel output slips in June from May record

By Manolo Serapio Jr
SINGAPORE, July 15 (Reuters) - Shanghai rebar futures rose
for a fourth session in five on Monday, reflecting firm demand
in the world's top consumer, while data showing the Chinese
economy grew slower in the second quarter but in line with
market expectations also supported.
Gains in Chinese steel prices should boost appetite for raw
material iron ore, helping sustain last week's rally in spot
prices to near two-month peaks.
The most-traded rebar contract for January delivery on the
Shanghai Futures Exchange rose half a percent to 3,673
yuan ($600) a tonne by the midday break. It hit a session high
of 3,694 yuan, close to last week's peak of 3,700 yuan -- the
highest since May 14.
"This July is different - demand is picking up in a
traditionally weak consumption season, and end users' purchases
have been rising in the last two weeks," said Qiu Yuecheng, an
analyst with steel trading platform Xiben New Line Co Ltd in
Shanghai.
Xiben data showed that the weekly purchases of rebar and
wire rod from end users in Shanghai surged 15 percent in the
second week of July from the first week.
China's crude steel output eased from a record high in June,
but still stood at a hefty 64.66 million tonnes as higher prices
drove production.
Rebar also got a boost from data showing that China's
economy grew an annual 7.5 percent in the second quarter, slower
than the previous quarter's 7.7 percent pace but matching
economists' forecasts.
That was a relief for investors who feared a worse number
after last week's dismal June trade data, sending Chinese and
other Asian equities higher.
Price offers for imported iron ore cargoes in China,
including those from top suppliers Australia and Brazil, rose by
$2 a tonne on Monday, according to Chinese consultancy Umetal.
"It looks like iron ore will be able to sustain the upward
momentum. There's demand for the raw material because steel
prices are rising and mills think it's time to buy before prices
go up further," said an iron ore trader in Shanghai.
Benchmark 62-percent grade iron ore .IO62-CNI=SI rose 1.3
percent to $126.80 a tonne on Friday, its highest level since
May 14, based on data from compiler Steel Index.
Over the past two weeks, iron ore has increased nearly 9
percent, recovering some lost ground from the first half of the
year when it fell by a fifth.
Iron ore swaps <0#SGXIOS:> were also firm in early Asian
deals on Monday, reflecting market expectations spot rates can
scale higher, traders said.
The August contract was traded at $127 a tonne,
up from Friday's close of $126.17, traders said.
Shanghai rebar futures and iron ore indexes at 0417 GMT

Contract Last Change Pct Change
SHFE REBAR JAN4 3673 +18.00 +0.49
THE STEEL INDEX 62 PCT INDEX 126.8 +1.60 +1.28
METAL BULLETIN INDEX 127.51 +1.08 +0.85

Rebar in yuan/tonne
Index in dollars/tonne, show close for the previous trading day
($1 = 6.1375 Chinese yuan)