Rebar Gains to Five-Month High as Copper Rises on China Property
Steel reinforcement-bar futures in Shanghai advanced to the highest level in more than five months on speculation that construction in China will pick up as the real-estate market recovers. Copper climbed to a one-week high.
Rebar for delivery in May gained 2.2 percent to 3,873 yuan ($621) a metric ton on the Shanghai Futures Exchange, the highest close for the most-active contract since July 16, trimming this year’s decline to 8 percent.
China’s property development investment will probably grow 17.1 percent next year as average property prices may increase 7.8 percent, Soufun Holdings Ltd., the country’s biggest real estate website owner, said Dec. 21. New home prices climbed in 53 of the 70 cities in November, compared with 35 in October, data from the National Bureau of Statistics showed Dec. 18.
“Given rising home prices in the last couple of months, the market consensus is that the property market can only be better next year,” Wang Yangqi, an analyst at Nanhua Futures Co., said by phone from Hangzhou. “Steel traders have been stockpiling on expectation that demand will turn better.”
The average spot price for rebar fell 0.1 percent to 3,609 yuan a ton, according to Beijing Antaike Information Development Co. Spot iron ore at Tianjin port was unchanged at $135.40 a dry ton yesterday, data compiled by The Steel Index (SHPROP) Ltd showed.
The Shanghai Stock Exchange Property Index closed 4.1 percent higher to 3,542.71, the highest since July 2011, driving the Shanghai Composite Index to close 2.5 percent higher at 2,213.61, erasing a yearly loss.
Copper for April delivery, the most-active contract, closed 0.5 percent higher at 57,120 yuan a ton. The London Metal Exchange and Comex are closed today for Christmas.
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