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Steel reinforcement-bar futures traded near a one-month low in Shanghai as investors cut their exposure to the building material amid signs of tighter control on property investment.
Rebar for October delivery dropped by as much as 0.9 percent to 3,998 yuan ($641) a metric ton on the Shanghai Futures Exchange, the lowest since Jan. 22, before trading at 4,028 yuan at 10:32 a.m. local time. The contract lost 5.6 percent last week.
Chinese ministries and local governments may announce detailed rules to tighten control of the property market “soon,” China Securities Journal reported today, citing an unidentified person. Premier Wen Jiabao last week told cities that have had “excessively fast” price gains to impose home- purchase restrictions.
“Expectations for more measures to curb property price gains had an impact on rebar market sentiment,” Dang Man, analyst at Maike Futures Co., said in a report today. “Prices may decline in the short-term.”
Some of the measures will probably be announced before the National People’s Congress and the Chinese People’s Political Consultative Conference, which begin next week, according to the China Securities Journal report.
The average spot price for rebar fell 0.4 percent to 3,866 yuan a ton on Feb. 22, according to data from Beijing Antaike Information Development Co. Iron ore for immediate delivery fell 1.7 percent to $153.60 a ton on Feb. 22, according to data compiled by The Steel Index Ltd.
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