Steel reinforcement-bar futures fell for a third day in Shanghai, set for the biggest weekly loss in more than a year, on rising supplies and concern that climbing home prices may prompt curbs on property development.
Rebar for October delivery dropped as much as 0.7 percent to 4,057 yuan ($650) a metric ton on the Shanghai Futures Exchange, and was at 4,063 yuan at the 11:30 a.m. break. Futures have declined 5 percent this week, the most such loss since October 2011.
Inventory of steel billet in Tangshang city of northern China, the benchmark for unfinished steel, rose to a record 1.77 million tons yesterday, according to ITG Futures Co. New home prices gained in 53 cities in January from the previous month, the statistics bureau said today. Premier Wen Jiabao this week told cities that have had “excessively fast” price gains to “promptly” impose home-purchase restrictions.
“The mounting inventory suggests the problem of over- production has resurfaced and the market has ignored the weak fundamentals,” Chen Shaoxiong, an analyst at ITG Futures, said by phone from Xiamen. “Any talks on property curbs are sure to hurt rebar prices because it’s crucial to usage.”
The average spot price for rebar was unchanged at 3,881 yuan a ton yesterday, according to data from Beijing Antaike Information Development Co. Iron ore for immediate delivery fell 1.7 percent to $156.20 a ton yesterday, according to a price index compiled by The Steel Index Ltd.
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