Steel reinforcement-bar futures in Shanghai rose for the first time in three days as the Chinese government set its 2013 economic targets.
Rebar for delivery in October on the Shanghai Futures Exchange advanced as much as 0.5 percent to 3,924 yuan ($630) a metric ton and traded at 3,907 yuan at 9:40 a.m. local time. The most-active contract bounced back from the lowest close yesterday since Dec. 27.
China maintained its economic-growth target at 7.5 percent for this year while setting a lower inflation goal of 3.5 percent. Premier Wen Jiabao yesterday urged prolonging efforts to rein in real-estate speculation, pushing rebar lower and triggering the biggest decline in Chinese stocks in 18 months.
“The sharp pullback in prices will encourage some users to buy rebar in preparation for the traditionally-strong demand season ahead, as construction activity picks up along with rising temperature in March,” said Zheng Ge, analyst at Wanda Futures Co. in Beijing
The average spot price for rebar was little changed at 3,789 yuan a ton yesterday, according to data from Beijing Antaike Information Development Co. Iron ore for immediate delivery fell 1.2 percent to $148.80 a ton yesterday, according to data compiled by The Steel Index Ltd.
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