BEIJING: China's iron ore futures rose for a second straight session on Tuesday amid positive market sentiment about a swift economic recovery and hopes of further demand after the rainy season.
The most-traded iron ore futures on the Dalian Commodity Exchange, for September delivery, jumped as much as 3.2% to 845 yuan ($120.53) a tonne. The contract closed up 2.4% at 839 yuan per tonne. "The surge in iron ore futures prices comes as (there are) no significant demand and supply contradictions," Huatai Futures wrote in a note.
"It's more (driven by) market sentiment and in preparation for the peak season," it said, adding that current utilisation rates at blast furnaces remained at high levels.
Spot prices for iron ore with 62% iron content for delivery to China, compiled by SteelHome consultancy, rose by $2.5 to $109.5 per tonne on Monday from the previous trading day.
Customs data showed China's iron ore imports in June hit 33-month high at 101.68 million tonnes, propped up by more shipments from major miners and strong demand outlook. Steel prices on the Shanghai Futures Exchange ended higher. The most traded October contracts of steel rebar and hot-rolled coils increased 0.2% and 0.4%, respectively, recovering from early losses.
Stainless steel futures, for September delivery, inched up 0.1% to 13,590 yuan a tonne.
Dalian coking coal fell 0.6% to 1,198 yuan a tonne.
Dalian coke edged 0.5% lower to 1,898 yuan per tonne.
China's yuan-denominated exports in June rose 4.3% from a year earlier, customs data showed, while imports increased 6.2%.
China's economy likely returned to modest growth in the second quarter after a record contraction, as lockdown measures ended and policymakers announced more stimulus to combat the shock from the coronavirus crisis, according to a Reuters poll.
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