Steel reinforcement-bar futures rose for a second day on optimism that government polices aimed at redeveloping of shantytowns will stoke more construction, increasing demand for the commodity.
Rebar for delivery in January on the Shanghai Futures Exchange rose 0.6 percent to 3,551 yuan ($578) a metric ton at 10:50 a.m. in Beijing. The contract has fallen 1.6 percent this week.
China may release details of policy to redevelop shantytowns in the second half of this year, China Securities Journal reported yesterday. Redevelopment of the shantytowns could become a new point to boost economic growth, according to a statement posted on the central government’s website on June 26 after a State Council meeting chaired by Premier Li Keqiang. The nation’s overall economic situation is stable this year, according to the statement.
“On the policy front, there has been bullish support for a rebound in steel prices,” Cai Yuehui, an analyst at Ruida Futures Co., said from Fujian.
Iron ore prices for immediate delivery at Tianjin port in China yesterday gained 1.3 percent to $115.3 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 fell 0.5 percent to 3,360 yuan a ton yesterday, according to data from Beijing Antaike Information Development Co.
To contact Bloomberg News staff for this story: William Bi in Beijing at firstname.lastname@example.org
To contact the editor responsible for this story: Brett Miller at email@example.com