Steel Rebar April 2008 contracts of the Dubai Gold and Commodities Exchange (DGCX) have registered a nearly 6.25% gain last week, as the contracts began the week at $908 per tonne and rose to an intra-week high of $964, before concluding on Thursday at $957.2, realising a huge gain of $56.30.
Last week also marked the largest-ever physical steel rebar delivery at DGCX. 460 metric tonne of steel rebar were successfully delivered by Wealthkare Commtrade DMCC, a broker-clearing member of DGCX, through the DCR system. Vision Commodities Services DMCC, another broker-clearing member of DGCX, undertook the delivery of 260 tonne of reinforcing steel bar.
?This successful physical delivery in such high quantities opens the gate for steel producers, traders, and stockists to hedge their price risk on the DGCX platform. It also creates a wide array of opportunities like cash-futures arbitrage in steel rebar,? Vision Commodities Services said in a statement.
The demand for steel rebar is on the rise from the construction industry in the world’s biggest oil exporting region, where more than $1 trillion worth of infrastructure projects are in the pipeline.