Steel reinforcement-bar futures in Shanghai fell to the lowest level in more than a month as the Chinese government prepared property-control measures.
Rebar for October delivery dropped by 1.5 percent to close at 3,956 yuan ($635) a metric ton on the Shanghai Futures Exchange, the lowest close for the most active contract since Jan. 11 and the the fifth straight decline.
The government has completed a draft of property controls designed to cool the real estate market, Shanghai Securities News reported today. China may also tighten monetary policy because of excessive liquidity in the market and rising home prices, China Securities Journal said in a commentary today.
“There’s expectations that the government will introduce more measures to curb real estate investments after the National People’s Congress, which will reduce demand for rebar,” Shenyin & Wanguo Futures Co., said in a report today.
New home prices rose in most cities the government tracked in January. Cities that have had “excessively fast” price gains should impose home-purchase restrictions if they’ve not done so already, according to a statement released Feb. 20 after a State Council meeting headed by Premier Wen Jiabao.
The average spot price for rebar fell for the third day, by 0.5 percent to 3,821 yuan a ton, according to data from Beijing Antaike Information Development Co. Iron ore for immediate delivery fell 1.1 percent yesterday to $151.90 a ton, according to data compiled by The Steel Index Ltd.