Aug. 16 (Bloomberg) -- Steel reinforcement-bar futures fell in Shanghai, paring a third weekly gain, on speculation that U.S. Federal Reserve scaling back stimulus may slow global growth.
Rebar for January delivery fell 0.2 percent to close at 3,811 yuan ($624) a metric ton on Shanghai Futures Exchange. Futures rose 1.5 percent this week, trimming this year’s drop to 4.4 percent.
Asian stocks fell for a second day as improving U.S. economic data increased concern that the Fed will reduce monetary easing. A report yesterday showed claims for jobless benefits unexpectedly dropped last week to the lowest level in almost six years. Fed Chairman Ben S. Bernanke may reduce the central bank’s monthly bond purchases next month, 65 percent of economists surveyed by Bloomberg predict.
“The stronger-than-expected economic data increased investors’ concerns,” said Wang Yongliang, an analyst at Beijing Cifco Futures Co. in Tianjin. “Rebar will trade sideways in the near future as the rally has come too fast.”
The average spot price for rebar was little changed at 3,568 yuan today, the highest since May, according to Beijing Antaike Information Development Co. Iron ore for immediate delivery at Tianjin port fell 1.1 percent to $141.20 a dry ton yesterday, according to a price index compiled by The Steel Index Ltd.
--William Bi, with assistance from Feiwen Rong in Beijing. Editors: Sungwoo Park, Ovais Subhani