Steel reinforcement-bar futures in Shanghai fell for the first time in five days amid a seasonal slowing in Chinese construction and after a decline in local stocks and commodities.
Rebar for delivery in January on the Shanghai Futures Exchange fell as much as 1.3 percent to 3,575 yuan ($582) a metric ton and was at 3,609 yuan at 11:22 a.m. local time. Futures climbed 2.4 percent last week.
Demand for the building material normally wanes in the summer in China as high temperatures hamper construction, said Wang Yongliang, an analyst at Beijing Cifco Futures Co. The recent price increase also led to more production among Chinese steel mills, he said.
“Both higher output and the traditional lean season for rebar consumption will pressure the market this week,” Wang said from Tianjin today.
Chinese stocks dropped the most in two weeks, led by commodity and industrial companies. The nation’s money-market cash squeeze is likely to reduce credit growth this year by 750 billion yuan ($122 billion), an amount equivalent to the size of Vietnam’s economy, according to a Bloomberg News survey.
Iron ore for immediate delivery at Tianjin port in China rose by 0.5 percent to $122.60 a dry ton on July 5, the highest since May 23, according to The Steel Index Ltd.
The average spot price for rebar in China gained 0.6 percent to 3,406 yuan a ton on July 5, according to data from Beijing Antaike Information Development Co.
To contact Bloomberg News staff for this story: Feiwen Rong in Beijing at firstname.lastname@example.org