Steel reinforcement-bar futures fell for a second day as China’s biggest squeeze on credit in at least a decade increased concern that demand for the construction material will falter.
Rebar for delivery in October on the Shanghai Futures Exchange fell as much as 0.8 percent to 3,423 yuan ($557) a metric ton and was at 3,434 yuan at 10:36 a.m. local time.
China’s CSI 300 Index (SHSZ300), a gauge of the nation’s equities, deepened its slump into a bear market today on concerns elevated money-market rates will exacerbate the country’s economic slowdown. The gauge had its biggest slump yesterday since August 2009 after the central bank signaled it will maintain efforts to curb speculative lending.
“The country’s financial markets were dealt a hard blow by surging funding costs and the prospect of a weaker economy ahead,” Dang Man, analyst at Maike Futures Co., said by phone from Xi’an today.
Iron ore prices for immediate delivery at Tianjin port in China fell 1.7 percent to $116.60 a dry ton yesterday, according to The Steel Index Ltd.
The average spot price for rebar in China was little changed at 3,389 yuan a ton yesterday, according to data from Beijing Antaike Information Development Co.
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