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 0.2 percent to 3,819 yuan ($613) per metric ton on the Shanghai Futures Exchange, the highest closing price for the most-active contract since July 19. The gain trimmed this year’s decline to 9.3 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, Shanghai Securities News reported, citing unidentified banks. The Shanghai Composite index climbed to the highest since Aug. 10 after Shen Danyang, Commerce Ministry spokesman, said the economy may rebound in 2013.
“The rally in rebar will likely continue” as the government will keep spending 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 3,624 yuan a ton today, the highest since Nov. 27, 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.