Rebar Declines as China Punishes Banks for Some Steel LoansBloomberg News
Steel reinforcement-bar futures fell to the lowest in more than a week after a report that China punished some bank employees over soured loans to steel traders.
Rebar for January delivery fell 0.2 percent to close at 3,789 yuan ($619) a metric ton, the lowest for a most-active contract since Aug. 9. Futures touched a four-month high at 3,848 yuan on Aug. 14.
Sub-branch heads of Industrial and Commercial Bank of China Ltd., China Construction Bank Corp., Bank of Communications Co. and Bank of Jiangsu Co. face legal action or were dismissed due to their involvement in the lending, the 21st Century Business Herald reported today, without citing anyone.
“The news triggered some selling from investors who want to take advantage of prices near the four-month high and as steel traders may find it harder to get loans,” said Wang Yongliang, an analyst at Beijing Cifco Futures Co. in Tianjin.
Iron ore for immediate delivery at Tianjin port dropped 0.1 percent yesterday to $139 a dry ton, according to a price index compiled by The Steel Index Ltd.
The average spot price of rebar fell for the first time in 13 days today, falling 0.1 percent to 3,636 yuan a ton, according to Beijing Antaike Information Development Co.
— With assistance by Feiwen Rong