Rebar for May delivery, the most-active contract on the Shanghai Futures Exchange, was 0.2 percent lower at 3,663 yuan ($601) a metric ton at 10:19 a.m. local time after earlier rising as much as 0.2 percent and falling 0.5 percent.
China will make markets “decisive” in allocating resources, according to a communique after a four-day Communist Party meeting. Such shift may lead to less government involvement in the long-term, eventually reducing overcapacity in industries from steel making to aluminum smelting, said Wang Yongliang, an analyst at Beijing Cifco Futures Co. in Tianjin.
“Rebar is trapped in a tight range now as investors absorb these long-term policy implications with the current weak seasonal demand in winter,” Wang said.
Iron ore for May delivery on the Dalian Commodity Exchange rose 0.2 percent to 945 yuan a ton. The steel-making material for immediate delivery at Tianjin port tracked by The Steel Index was unchanged at $135.90 a dry ton yesterday.
The spot price of rebar fell 0.1 percent to 3,553 yuan yesterday, according to Beijing Antaike Information Development Co.
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