BEIJING/SHANGHAI: Benchmark iron ore futures in China rose on Monday, gaining as much as 2.7%, supported by a recovery in consumption of steel products used in construction and manufacturing activity.
The most actively traded iron ore futures on the Dalian Commodity Exchange, for January delivery, closed up 0.3% at 852 yuan ($124.73) per tonne. It rose to 872 yuan per tonne earlier in the session.
Consumption of five main steel products used in the construction and manufacturing sectors jumped 2.7% as of Sept. 3 from the week earlier, data from consultancy Mysteel showed.
Capacity utilisation rates at 163 steel mills across China, meanwhile, stood at 85.38% last week, compared with 85.27% in the same period a year earlier, according to Mysteel.
Other steelmaking ingredients also rose, with Dalian coking coal firming 0.7% to 1,286 yuan a tonne and coke inching up 0.2% at 3,023 yuan a tonne.
Spot prices for iron ore with 62% iron content for delivery to China fell by $2 to $126 per tonne on Friday from the previous session. Steel rebar on the Shanghai Futures Exchange, for January delivery, dipped 0.6% to 3,736 yuan a tonne.
Hot-rolled coils, used for cars and home appliances, fell 1.3% to 3,864 yuan per tonne.
Stainless steel, for November delivery, edged down 0.3% to 14,805 yuan a tonne.
China's iron ore imports in August fell 10.9% from the previous month to 110.36 million tonnes on easing shipments from big suppliers and dented by port congestion, official customs data showed on Monday. China's exports rose for the third consecutive month in August, eclipsing an extended fall in imports, as more of its trading partners relaxed coronavirus lockdowns in a further boost to the recovery in the world's second-biggest economy.
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