Steel reinforcement-bar futures in Shanghai declined to their lowest level in two weeks, capping a quarterly loss, as the Chinese government tightened credit and continued property-market curbs.
The contract for delivery in October dropped 0.4 percent to end at 3,810 yuan ($614) a metric ton on the Shanghai Futures Exchange. That’s the lowest most-active price at close since March 14. Futures lost 4.5 percent this quarter, after an 11 percent advance in the previous three months.
China aimed to implement unified property registration rules from 2014, according to a statement on the central government’s website yesterday. The move may be a precursor to a property sales tax and adds to wider economic concerns after the government also imposed restrictions on wealth-management products, said Zheng Ge, an analyst at Wanda Futures Co.
“The rebar market suffered another round of worries on the policy front,” Zheng said by phone from Beijing. “We think prices might fall further as inventory remains high and rebar won’t be able to stage a meaningful rebound without bullish expectations for the macro-economy.”
The average spot price of rebar fell 0.4 percent to 3,655 yuan a ton today, according to Beijing Antaike Information Development Co. Spot iron ore at Tianjin port was little changed at $137.30 a dry ton yesterday, according to The Steel Index Ltd.