Steel reinforcement-bar futures in Shanghai rebounded from a two-day slide on the prospect that rising land sales will boost construction of homes amid shrinking supply of the building material.
Rebar for delivery in January on the Shanghai Futures Exchange rose 1.1 percent to close at 3,638 yuan ($593) a metric ton, paring this year’s decline to 8.8 percent.
Proceeds from land sales in 306 cities in the first half jumped 60 percent from a year ago to 1.13 trillion yuan, brokerage Zhongyuan Futures Co. said in a research report today. China’s total rebar inventory on July 5 dropped to 7.3 million tons, the lowest since Feb. 8, according to Shanghai Steelhome Information Technology Co.
“The property sector has outperformed expectations, and more land sales are bullish for rebar’s demand,” Shang Jinyu, an analyst at Zhongyuan Futures Co., said from Zhengzhou. “The fundamentals for rebar are looking more positive,” he said.
Iron ore for immediate delivery at Tianjin port rose 1.5 percent to $123.70 a dry ton yesterday, according to The Steel Index Ltd.
The average spot price for rebar in China fell 0.2 percent to 3,406 yuan a ton according to data from Beijing Antaike Information Development Co.