Steel reinforcement-bar futures in Shanghai rose to near a six-month high on speculation the government will pursue an urbanization policy this year, boosting demand for the building material.
Rebar for May delivery gained 0.6 percent to close at 3,987 yuan ($641) a metric ton on the Shanghai Futures Exchange at 3 p.m. local time. The contract reached 4,047 yuan on Jan. 7, the highest since July 10.
“Urbanization seems to remain high on the government agenda this year, which will fuel demand for steel,” Xia Caijun, an analyst at GF Futures Co., said in a report today. Rural-to-urban migration, urbanization and industrialization will keep driving expansion in 2013, said Ma Jiantang, head of the National Bureau of Statistics, on Jan. 18.
The average spot price of rebar was little changed at 3,731 yuan a ton today, according to data from Beijing Antaike Information Development Co. Spot iron ore at Tianjin port dropped gained 0.6 percent to $145.90 a dry ton yesterday, according to The Steel Index Ltd.
— With assistance by Feiwen Rong