Steel reinforcement-bar futures in Shanghai retreated amid concerns that recent gains in home prices could trigger new property curbs, reducing demand for the building material.
Rebar for delivery in October fell 0.4 percent to close at 4,171 yuan ($669) a metric ton on the Shanghai Futures Exchange and has dropped 2.4 percent this week as investors returned to the market after the Lunar New Year holiday last week.
China may increase borrowing costs and a down-payment requirement for second-home buyers, the Shanghai Daily reported today, citing an unidentified banking official. The Beijing municipal government will hold a meeting tomorrow with developers to discuss the property market and possible tightening policies, the Shanghai Securities News reported, citing an unidentified person from the local housing commission.
“Concerns about possible controls in the property market resurfaced and it is always a negative influence on the rebar market,” Zheng Ge, analyst at Wanda Futures Co., said by phone from Beijing today.
The average spot price for rebar was little changed at 3,881 yuan today and has gained 2.4 percent this week, according to Beijing Antaike data. Spot iron ore at Tianjin port rose 0.5 percent to $158 a dry ton yesterday, according to The Steel Index Ltd., extending this week’s advance to 1.9 percent.