Rebar in Shanghai declines on slowdown concerns

Steel reinforcement-bar futures in Shanghai dropped on concern that demand for the product used to strengthen concrete will falter as the property market cools amid an economic slowdown in China, the largest steelmaker.

The January-delivery rebar contract closed 0.2 percent lower at 3,554 yuan ($563) a metric ton on the Shanghai Futures Exchange. The contract lost 1.5 percent earlier, the biggest intraday decline since Sept 11. Trading volume of the most-active contract rose to 4.06 million lots from 3.94 million lots on Sept 14. Open interest increased to 1.32 million lots from 1.22 million lots. One lot is equal to 10 tons.

Home sales in China fell 4.7 percent in the week ended Sept 14 from a week earlier, CEBM Group said on Monday, citing data from 58 cities tracked by the Shanghai-based investment advisory company.

Citigroup Inc cut the country's 2013 growth forecast, saying the slowdown will extend into next year. China needs to be cautious with its monetary policies as quantitative easing in the United States will create pressure to control inflation, Xinhua News Agency reported, citing the Industrial Bank Co.

China Daily-Agencies