Reuters reported that Shanghai steel rebar futures rose to their highest in nearly seven weeks on expectations of firmer demand as China boosts spending on infrastructure and low-cost housing to support its economy.

The most traded rebar contract for January delivery on the Shanghai Futures Exchange touched a session high of CNY 3,154 per tonne, its loftiest since May 28. It closed up 0.8% at CNY 3,146.

It was the fifth day of gains for rebar futures boding well for prices of raw material iron ore that have been gradually recovering from this year's slump fuelled by abundant supply.

A trader in Shanghai said that “These factors are driving steel prices higher, but I don't think they can last. The property market is still on a downward trend. For the second and third tier cities, there's still an oversupply of properties and it remains a big problem.

China has been stepping up measures to stimulate its economy that grew by 7.4% in the first quarter, the slowest pace in six quarters.