Jan. 22 (Bloomberg) -- Steel reinforcement-bar in Shanghai rose for the first time in five days amid climbing ore prices as investors assessed improvement in China’s money markets.
Rebar for May delivery on the Shanghai Futures Exchange gained 0.4 percent, the most since Jan. 14, to end at 3,424 yuan ($566) a metric ton. It closed at 3,410 yuan yesterday, the lowest close for a most-active contract since Sept. 7, 2012.
A drop in iron ore prices in China is transitory as the Asian country’s economic fundamentals remain solid, Murilo Ferreira, chief executive officer of Vale SA, the world’s largest producer of the raw material, said yesterday. China’s benchmark money-market rate fell for a second day as fund injections by the central bank eased a cash squeeze in the run- up to the Lunar New Year holiday that starts Jan. 31.
“The central bank’s injection of funds into the money market helped lift sentiment a bit,” said Zheng Ge, an analyst at Wanda Futures Co. in Beijing.
Iron ore futures for May delivery on the Dalian Commodity Exchange rose 0.6 percent to close at 852 yuan a ton. The contract for immediate delivery fell 1.3 percent yesterday to $123.20 a dry ton, the cheapest since July 8, according to The Steel Index Ltd.
Spot rebar tracked by Beijing Antaike Information Development Co. dropped 0.2 percent today to 3,408 yuan a ton, the lowest since July 11.
--Feiwen Rong. Editors: Sungwoo Park, Ovais Subhani