China's Xi Jinping Bans New Buildings, as Steel Rebar Price Rises

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In an interesting move to show the world that China’s cronies are not corrupt, China premier Xi Jinping decreed that new construction on government buildings would be frozen for five years.

Thank goodness he did not utter “private and commercial sector” as well.

Via the FT: “Whether the latest ban has a similarly negative impact on the property market will depend on how it is interpreted by state-owned companies. Chinese corporate executives have felt pressure to comply with Mr Xi’s earlier austerity policies even though government officials, not companies, were his targets.”

The biggest mover on our weekly Construction MMI® was the price of Chinese rebar, which saw a 2.9 percent increase. This week marked the third in a row of rising prices for the metal.

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The price of US shredded scrap rose 2.2 percent over the past week. This was the third week in a row of increasing prices. The Chinese low price of 62% Australian iron ore fines traded sideways. Chinese H-beam steel also didn’t move.

Chinese aluminum bar remained essentially flat. No movement either for European 1050 aluminum.

The weekly US bar fuel surcharges will be updated today – check ’em out by subscribing to the IndX℠.

The Construction MMI® collects and weights 9 metal price points used within the construction industry to provide a unique view into construction industry price trends. For more information on the Construction MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.