Oct. 30 (Bloomberg) -- Steel reinforcement-bar futures in Shanghai climbed as China’s stocks rose the most in a week and concern abated that the country’s central bank would start tightening monetary policy.
Rebar for delivery in May, the most-active contract by volume on the Shanghai Futures Exchange, rose 1 percent to close at 3,645 yuan ($598) a metric ton.
The Shanghai Composite Index rose 1.5 percent, the most since Oct. 21, as the central bank allayed fears of a cash crunch. Such concern appears to be overblown, said Lilian Leung, who manages almost $1 billion at JPMorgan Asset Management Ltd. in Hong Kong. The rise in money-market rates reflects end-of- month cash demand and tax payments, Leung said.
“More investors jumped back into rebar and iron ore futures as concern about policy tightening seems to have dissipated,” said Wang Yongliang, an analyst at Beijing Cifco Futures Co. in Tianjin.
Iron ore futures for May delivery on the Dalian Commodity Exchange gained 0.3 percent to close at 924 yuan a ton.
Iron ore for immediate delivery at Tianjin port, tracked by the Steel Index, lost 0.4 percent to $131.30 a dry ton yesterday.
The spot price of rebar advanced 0.2 percent to 3,489 yuan a ton today, according to Beijing Antaike Information Development Co.
--Feiwen Rong. Editors: Jarrett Banks, Brett Miller