Steel reinforcement-bar futures declined with China’s stocks on concerns that further tightening measures in the property sector may damp demand.
Futures for delivery in October dropped as much as 1.2 percent to 3,841 yuan ($618) a metric ton on the Shanghai Futures Exchange, before trading at 3,847 yuan at 11:08 a.m. Shanghai time. The most-active contract has lost 11 percent after climbing to a 10-month high of 4,297 yuan on Feb. 8.
China’s southern city of Shenzhen is likely to raise the down payment for second home purchases to 70 percent from 60 percent in April, the 21st Century Business Herald reported today. Cities in China’s central and western provinces may issue detailed property-curb policies next month, the China Securities Journal reported. The benchmark Shanghai Composite Index sank as much as 2.6 percent today, the most in three weeks, as the Shanghai Property Index (SHPROP) tumbled 2.7 percent.
“Rebar is affected by the weakening sentiment for China’s stocks,” said Huang Huiwen, an analyst at Shanghai Cifco Futures Co. “Investors are worried about the policy uncertainties as the new leaders take office.”
The average spot price of rebar fell 0.1 percent to 3,670 yuan a ton yesterday, according to Beijing Antaike Information Development Co. Spot iron ore at Tianjin port rose 0.2 percent to $137.4 a dry ton yesterday, according to The Steel Index Ltd.
To contact Bloomberg News staff for this story: Helen Sun in Shanghai at firstname.lastname@example.org
To contact the editor responsible for this story: Brett Miller at email@example.com