Government spending advances rebar futures

The volume of steel reinforcement-bar futures traded on the Shanghai Futures Exchange advanced to a record on speculation that new infrastructure projects in China will increase demand.

A total of 6.01 million lots of the most-active, January delivery contract were traded on Monday, up from 5.9 million lots on Sept 7, the previous high, according to the exchange. One lot equals 10 metric tons.

Futures climbed for a third day, closing 2.7 percent higher at 3,497 yuan ($551) a ton as open interest rose 15,028 lots to 1.38 million lots.

China, the world's largest steel producer, has been ramping up infrastructure spending to counter a slowdown in economic growth that could result in the weakest annual pace in more than two decades. The government approved plans for 2,018 kilometers of roads last week, as well as sewage plants, port and warehouse projects and subways. Rebar prices have fallen 17 percent this year.