Steel reinforcement-bar futures rose on speculation government polices supporting purchases of first homes and the fastest gain in property prices in two years will stoke more construction.
Rebar for delivery in October on the Shanghai Futures Exchange rose as much as 1.9 percent to 3,547 yuan ($578) a metric ton, erasing and earlier decline of 1.5 percent, and traded at 3,518 yuan at 11:08 a.m. It fell 1.3 percent yesterday, the first loss in six days, and is headed for a third weekly gain.
China will support people seeking to buy their first homes and authorities will boost credit support for industries the government has defined as strategic or labor-intensive, the State Council said June 19. New home prices in Beijing, Shanghai and Guangzhou posted the biggest gains in May since at least January 2011, official statistics released this week showed.
“The property sector is showing signs of strengthening demand and government policies can be read as favoring housing construction and therefore steel consumption,” Xia Caijun, analyst at GF Futures Co., said by phone from Guangzhou.
Iron ore prices for immediate delivery at Tianjin port in China yesterday gained 0.5 percent to $120.60 a dry ton, according to The Steel Index Ltd. The raw material is a key ingredient for steel production.
The average spot price for rebar in China was unchanged at 3,387 yuan a ton yesterday, according to data from Beijing Antaike Information Development Co.
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