Chinese iron ore rises on hopes of economic stimulus

Chinese iron ore futures rose for a second day on Tuesday on expectations the country will enact more economic stimulus measures that would boost steel demand in the world's largest consumer of the metal.
The country plans to create favourable conditions for private Chinese companies and to improve the competitiveness of its manufacturing sector, as well as promoting "high-quality" trade, state-owned broadcaster CCTV reported late on Monday, citing a central committee meeting on reforms chaired by President Xi Jinping.
The most actively trade iron ore futures contract on the Dalian Commodity Exchange, for January 2020 delivery, rose as much as 4% to 660 yuan ($92.74) per tonne on the Dalian Commodity Exchange. It closed up 3.3% at 655.5 yuan a tonne.
Prices for spot cargoes of benchmark iron ore with 62% iron content for delivery to China rose to $92 a tonne on Monday, up from $91 on Friday.
The most-active construction steel rebar contract on the Shanghai Futures Exchange, for October delivery, gained 0.9% to 3,479 yuan a tonne on Tuesday.
Demand for raw materials for steel mills also climbed as companies tried to speed up work before the expected announcements of construction suspensions ahead of the National Day holiday starting on October 1.
"With the expectations of halting construction around the 70th anniversary of China's establishment and strengthening counter-cyclical measures, downstream firms are accelerating construction and are more willing to replenish inventory," Huatai Futures wrote in a note on Tuesday.
Futures for hot-rolled coil steel, used in cars and home appliances, for January 2020 delivery on the Shanghai Futures Exchange rose 1.2% to 3,522 yuan a tonne.
Other steelmaking ingredients also gained, with Dalian coking coal for January delivery climbing 0.4% at 1,338 yuan a tonne and coke for January 2020 rising 1% to 1,961 yuan.
China's factory gate prices contracted for a second month in August and shrank most in three years, the National Bureau of Statistics reported on Tuesday.