Rebar Fluctuates as Investors Await China Party Plenum Meeting
Steel reinforcement-bar futures swung between gains and losses before a meeting of China’s top Communist Party officials in Beijing which will map out a blueprint for economic reform.
Rebar for May delivery, the most-active contract by volume on the Shanghai Futures Exchange, rose as much as 0.4 percent to 3,685 yuan ($603) a ton and fell as low as 3,666 yuan before trading at 3,670 yuan by 10:41 a.m. local time. The contract lost 1.5 percent last month.
The Third Plenum meeting on Nov. 9-12 comes as manufacturing shows signs of expansion amid excessive credit growth, rising local-government debt and weaker export momentum. The agenda may include land and tax policies, according to a front-page editorial published by China Securities Journal.
“Everyone is a bit anxious before the meeting and wants to know what it means for the market,” said Zheng Ge, an analyst at Wanda Futures Co. in Beijing. “Firmness in spot iron ore and a decline in rebar inventory provided support.”
Iron ore for immediate delivery at Tianjin port, tracked by the Steel Index, jumped 2.6 percent on Nov. 1 to $135.30 a dry ton, the highest level since Sept. 5. Rebar inventory in China slumped 5.2 percent to 5.66 million tons as of Nov. 1, the lowest since January, according to Shanghai Steelhome Information Technology Co.
Iron ore for May delivery on the Dalian Commodity Exchange rose 0.7 percent to 949 yuan a ton today.
The spot price of rebar was little changed on Nov. 1 at 3,510 yuan a ton, according to Beijing Antaike Information Development Co.
To contact Bloomberg News staff for this story: Feiwen Rong in Beijing at firstname.lastname@example.org