Aug. 19 (Bloomberg) -- Steel reinforcement-bar futures rose, extending a rally in the past three weeks, as China’s new home prices climbed and investors expected increased infrastructure investments, boosting demand for the construction material.
Rebar for January delivery gained as much as 0.8 percent to 3,843 yuan ($629) a metric ton on the Shanghai Futures Exchange and was at 3,821 yuan at 10:59 a.m. local time. The most-active contract rose 1.5 percent last week for a third straight gain.
China’s new-home prices in July advanced the most since January 2011 in the nation’s four major cities, led by a 17 percent jump in Guangzhou and Shenzhen, according to a statement by the National Bureau of Statistics yesterday. The country’s banks will lend more to infrastructure projects and boost the economy, the China Securities Journal reported today.
“Rebar’s upward trend looks intact as the demand outlook improved,” said Ren Xinlei, an analyst at Luzheng Futures Co. in Jinan.
Iron ore for immediate delivery at Tianjin port fell 2.3 percent to $137.90 a dry ton Aug. 16, according to a price index compiled by The Steel Index Ltd. The steel-making raw material rose to $142.80 Aug. 14, the highest level since March.
The average spot price for rebar was little changed at 3,568 yuan a ton on Aug. 16, the highest since May, according to Beijing Antaike Information Development Co.
--Feiwen Rong. Editors: Sungwoo Park, Ovais Subhani