Jan. 24 (Bloomberg) -- Steel reinforcement-bar futures in Shanghai climbed for the first week in seven as China’s benchmark money-market rates dropped after the central bank injected cash.
Rebar for May delivery on the Shanghai Futures Exchange rose 0.7 percent to close at 3,487 yuan ($576) a metric ton today. The contract advanced 0.5 percent this week, the first such gain since Dec. 6.
The People’s Bank of China pumped more than 375 billion yuan into the banking system this week to meet increased cash demand before the week-long Lunar New Year holiday starting Jan. 31. The seven-day repurchase rate, a gauge of interbank funding availability, touched 4.19 percent, the lowest since Jan. 16.
“The fundamentals haven’t changed but relief in the money market helped rebar stabilize,” said Yu Yang, an analyst at Shenyin & Wanguo Futures Co. in Shanghai.
Iron ore for immediate delivery rose 0.3 percent to $123.90 yesterday and reached the lowest level in more than six months on Jan. 21, according to the Steel Index Ltd. Iron ore futures traded on the Dalian Commodity Exchange fell 0.1 percent to close at 877 yuan a ton.
Spot rebar tracked by Beijing Antaike Information Development Co. was unchanged today at 3,403 yuan a ton, matching the lowest level in more than six months reached yesterday.
--Feiwen Rong. Editors: Jarrett Banks, Brett Miller