Bloomberg reported that steel reinforcement bar futures climbed to a five month high, heading for the best quarterly performance in two years, on optimism that a recovery in the real estate market in China, the biggest user may boost demand.
Rebar for delivery in May closed 1.2% higher at CNY 3,916 (USD 628) a metric tonne on the Shanghai Futures Exchange, the highest level for the most-active contract since July 13. Futures have climbed 8.9% this quarter, the biggest advance since the last three months of 2010. That reduced this year’s decline to 7%
China’s statistics bureau said that new home prices rose in 53 of the 70 cities the government tracks in November from the previous month, the most in 18 months. Retailing, real estate and mining have improved, according to the China Beige Book summary. Iron ore producers strengthened as steel demand rose from housing, infrastructure and manufacturing, CBB International LLC, a New York-based researcher, said in the summary e-mailed yesterday.
Mr Zhang Lei an analyst at Nanhua Futures Co said that “Market participants have been looking for a release of pent up demand early next year, along with rising home prices. An unusually strong physical market has been supporting futures as demand is usually tepid in the winter season.”
According to Beijing Antaike Information Development Co, the average spot price for rebar climbed 0.4 percent to CNY 3,637 a tonne yesterday, the highest level since November 27. Spot iron ore at Tianjin port advanced 3% to USD 139.40 a dry tonne, the highest level since May 9.
Source:
http://www.steelguru.com/chinese_news/SHFE_steel_rebar_futures_set_for_best_quarter_in_two_years/296801.html
