Steel reinforcement-bar gained for a third day, rising to the highest level in five months, amid signs lending in China will increase next year, stimulating economic growth.
Rebar for delivery in May rose as much as 0.8 percent to 3,841 yuan ($616) per metric ton on the Shanghai Futures Exchange, the highest price for the most-active contract since July 19. Futures ended the morning session at 3,824 a ton, trimming this year’s decline to 9.2 percent.
China’s new loans may be about 9 trillion yuan next year, a gain of as much as 800 billion yuan from this year, the Shanghai Securities News reported. Chinese stocks climbed to the highest level in five months after Shen Danyang, Commerce Ministry spokesman, said in Beijing the economy may rebound in 2013.
“The rally in rebar will likely continue” as the government will continue to spend money on infrastructure, Zhang Xin, an analyst at Yongan Futures (Shenyang) Co., said by phone.
China will seek higher-quality growth next year, with urbanization a driver, the Xinhua News Agency reported Dec. 16, citing the central economic work conference in Beijing. The country will boost spending on so-called non-redundant infrastructure projects that provide long-term benefits, it said.
The average spot price of rebar rose 0.6 percent to 3,604 yuan a ton yesterday, the highest since Nov. 28, according to Beijing Antaike Information Development Co. Spot iron ore gained 2.2 percent to $132.20 a dry ton at Tianjin port yesterday, according to a gauge compiled by The Steel Index Ltd.
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