Rebar Rises for Second Day After China Money-Market Rates Drop
Steel reinforcement-bar futures in Shanghai climbed for a second day after money-market rates declined, indicating a drop in the cost of funding.
Rebar for delivery in May, the most-active contract by volume on the Shanghai Futures Exchange, rose as much as 0.4 percent to 3,601 yuan ($591) a metric ton and was at 3,599 yuan at 10:07 a.m. local time.
The People’s Bank of China added 13 billion yuan using seven-day reverse repurchase contracts today, according to a trader at a primary dealer required to bid at auctions. The seven-day repurchase rate, a gauge of short-term liquidity in China, fell 15 basis points to 4.85 percent.
“Investors were worried about a liquidity squeeze, but the central bank seems to be showing there’s no shift to tighter policy yet,” said Ren Xinlei, an analyst at Luzheng Futures Co. in Jinan.
The spot price of rebar was little changed yesterday at 3,482 yuan a ton, according to Beijing Antaike Information Development Co.
Iron ore for immediate delivery at Tianjin port, tracked by the Steel Index, lost 1.1 percent to $131.80 a dry ton yesterday.
To contact Bloomberg News staff for this story: Feiwen Rong in Beijing at email@example.com
To contact the editor responsible for this story: Brett Miller at firstname.lastname@example.org