Benchmark Dalian iron ore futures jumped in morning trade on Wednesday, extending gains for a second session, after China's Premier Li Keqiang again vowed to ensure that key economic goals for this year are achieved.
China should keep macro policies stable, improve the use of local government special bonds and strengthen support for the real economy, state television cited a state council meeting chaired by Li on Tuesday.
The most-traded iron ore futures on the Dalian Commodity Exchange, gained as much as 2% to 613 yuan ($87.65) a tonne in morning trade. It closed up 1.1% at 608 yuan per tonne.
The gain also came after Australia's Port Hedland said its iron ore shipments to China slipped 0.7% in October compared with a month earlier.
Prices for spot cargoes of benchmark iron ore with 62% iron content for delivery to China pinned at $79.5 a tonne on Tuesday, after diving for four sessions.
Futures of construction steel rebar on the Shanghai Futures Exchange, for January delivery, increased 1.0% to 3,442 yuan a tonne.
Shanghai hot-rolled coil, used for cars and home appliances, climbed 0.9% to 3,377 yuan per tonne.
"The consumption for steel products in short term remains to be strong, as market sentiment was boosted by falling inventory amid rushing constructions." Huatai Futures wrote in a note.
Shanghai stainless steel futures, for February 2020 delivery, edged up 0.5% to 14,360 yuan per tonne.
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