👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

Shanghai steel falls with iron ore amid China property curbs

Published 27/09/2016, 01:15 pm
© Reuters.  Shanghai steel falls with iron ore amid China property curbs

* Shanghai rebar, Dalian iron ore drop from two-week highs

* Nanjing latest second-tier city to restrict home purchases

By Manolo Serapio Jr

MANILA, Sept 27 (Reuters) - Chinese steel and iron ore futures slid more than 2 percent on Tuesday, retreating from recent two-week highs amid concerns Beijing's efforts to cool surging home prices would slow demand for steel.

China's eastern city of Nanjing said on Sunday it would restrict home purchases, the latest second-tier city to do so as the government tries to rein in home prices. average new home price in 70 major Chinese cities climbed an annual 9.2 percent in August, up from 7.9 percent in July, government data showed last week. real estate curbs will not encourage developers to build new houses and it will eventually affect demand for steel," said a Shanghai-based iron ore trader.

The most-traded rebar on the Shanghai Futures Exchange SRBcv1 was down 2.3 percent at 2,269 yuan ($340) a tonne by 0258 GMT. The construction steel product peaked at 2,353 yuan on Monday, its strongest since Sept. 12.

Rebar has fallen more than 6 percent so far in September, typically a brisk period for construction activity in China following the summer lull. But some traders say apart from the property curbs, rains in parts of the country have limited construction projects.

There was also limited appetite for steelmaking raw material iron ore, with the most-traded contract on the Dalian Commodity Exchange DCIOcv1 slipping 2.1 percent to 404.50 yuan a tonne. It touched a two-week high of 420 yuan on Sept. 22.

There is little appetite for mills to replenish iron ore stocks ahead of China's week-long National Day holiday that starts on Oct. 3, said the Shanghai trader.

"I think most mills have enough supply (of iron ore) or they don't have enough problem to secure supply for their immediate demand," he said.

Iron ore for delivery to China's Tianjin port .IO62-CNI=SI slipped 0.2 percent to $56.40 a tonne on Monday, according to The Steel Index. ($1 = 6.6694 Chinese yuan)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.