Steel reinforcement-bar futures in Shanghai declined as high inventories and property curbs increased concern that demand may wane.
Rebar for delivery in October on the Shanghai Futures Exchange fell by 0.4 percent to close at 3,892 yuan ($626) a metric ton, the lowest close for the contract since Dec. 24.
The China’s cabinet on March 1 introduced measures to tame home prices, including a 20 percent tax on individuals selling properties. Jiangsu Shagang Group Co., China’s biggest non-state-owned mill, cut prices for rebar products by 250 yuan to 3,800 yuan a ton after the State Council announced detailed property curbs, Shanghai Securities News reported today.
“The main theme now in the rebar market is high inventory and the government curb on property investment, which are bearish for building material demand,” said Cai Yuehui, an analyst at Ruida Futures Co. Cai said the market may be prone to rebound with gains in the U.S. dollar spurring other metals such as the copper.
The average spot price for rebar fell for the seventh day today, by 0.7 percent to 3,726 yuan a ton, according to data from Beijing Antaike Information Development Co. Iron ore for immediate delivery fell 1.5 percent yesterday to $144.10 a ton yesterday, according to data compiled by The Steel Index Ltd.
— With assistance by Helen Yuan, and Feiwen Rong