Rebar Posts Weekly Decline as Shanghai Curbs Housing Purchases

Nov. 8 (Bloomberg) -- Steel reinforcement-bar futures fell this week after China’s biggest city introduced new limits to purchasing homes, worsening the demand outlook for the construction material.

Rebar for May delivery, the most-active contract on the Shanghai Futures Exchange, fell 0.5 percent to 3,661 yuan ($601) per metric ton. Futures declined 0.3 percent this week.

Shanghai raised the down payment for second-home buyers to no less than 70 percent of the value, according to a statement on local housing authority’s website today. The city also tightened qualification for non-local home buyers, it said.

“Demand is still looking weak because of expectations for more housing curbs,” said analyst Wang Yongliang of Beijing Cifco Futures Co.

Iron ore for May delivery on the Dalian Commodity Exchange fell 0.6 percent to 939 yuan a ton. The steel-making material for immediate delivery at Tianjin port tracked by The Steel Index lost 0.2 percent to 136.90 yuan a ton yesterday.

China imported 670 million tons of iron ore in the first 10 months this year, up 10 percent from a year earlier, the country’s customs agency said today.

The spot price of rebar gained 0.1 percent to 3,559 yuan a ton, the highest since Sept. 13, the according to Beijing Antaike Information Development Co.

To contact Bloomberg News staff for this story: William Bi in Beijing at wbi@bloomberg.net

To contact the editor responsible for this story: Brett Miller at bmiller30@bloomberg.net