Rebar futures fall on housing-demand fears

Steel reinforcement-bar futures fell in China on Wednesday, snapping a two-day advance on concern government measures to curb housing purchases may sap demand for the construction material.

The January-delivery contract dropped as much as 1 percent to 3,513 yuan ($557) a metric ton and closed the morning trading at 3,514 yuan. Futures have declined 13 percent this quarter.

The Shanghai Stock Exchange Property Index plunged as much as 1.2 percent after the southern Chinese city of Guangzhou limited pre-sales for some home projects.

The Securities Daily also reported Chen Quansheng, an adviser to the State Council, said China should shift its property control policy to curbing the selling of homes instead of imposing a buying limit

"Rebar, a key component of building and public project construction, closely correlates with the property sector" listed on the exchanges, Yi Yaozhong, said an analyst at Yongan Futures Co, by phone from Beijing.