Dec. 24 (Bloomberg) -- Steel reinforcement-bar futures in Shanghai climbed for the first time in nine days after state media reported China would halt new steel plant projects and take stricter measures to curb air pollution.
Rebar for May delivery on the Shanghai Futures Exchange rose 0.4 percent to close at 3,628 yuan ($598) a metric ton. The most-active contract yesterday ended at 3,612 yuan, the lowest level since Nov. 21.
China will begin 10 measures to improve air quality and won’t approve new steel mills, aluminum smelters and cement plants in the next few years, the National Business Daily reported yesterday on its website, citing the Ministry of Industry and Information Technology. It will also shut facilities that fail to meet standards, it said.
“Recent measures to curb air pollution and retire excessive production capacity will provide support to the rebar market,” said Wang Yongliang, an analyst at Beijing Cifco Futures Co. in Tianjin.
Iron ore for May delivery on the Dalian Commodity Exchange climbed 0.8 percent to close at 900 yuan a ton today. The raw material for immediate delivery at the port of Tianjin tracked by The Steel Index dropped 0.6 percent to $131.90 a dry ton yesterday.
Rebar for immediate delivery tracked by Beijing Antaike Information Development Co. declined 0.3 percent to 3,522 yuan a ton today.
--William Bi. Editors: Sungwoo Park, Ovais Subhani