Oct. 9 (Bloomberg) -- Steel reinforcement-bar futures closed near the lowest level in three months after the International Monetary Fund cut its forecast for China’s economic growth, damping demand for the building material.
Rebar for delivery in January on the Shanghai Futures Exchange fell by 0.3 percent to close at 3,589 yuan ($586) a metric ton today. Futures touched 3,541 yuan yesterday, the lowest for a most-active contract since July 2.
China’s growth will be 7.6 percent this year and 7.3 percent next year, the IMF said yesterday, compared with July predictions of 7.8 percent and 7.7 percent. The World Bank lowered its China estimate a day earlier.
“The weaker macro fundamentals may suppress liquidity and property markets, reducing rebar demand,” said Wang Yongliang, an analyst at Beijing Cifco Futures Co. in Tianjin.
Iron ore for immediate delivery at Tianjin port gained 0.2 percent yesterday to $131.70 a dry ton, according to a price index compiled by The Steel Index Ltd. The average spot price of rebar gained 0.3 percent today to 3,501 yuan a ton, according to Beijing Antaike Information Development Co.
--Feiwen Rong. Editors: Brett Miller, Jarrett Banks