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, rose 1.7 percent to 833 yuan ($118.85) per ton.
“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 utilization rates at blast furnaces remained at high levels.
Spot prices for iron ore with 62 percent iron content for delivery to China, compiled by SteelHome consultancy, rose by $2.5 to $109.5 per ton on Monday from the previous trading day.
Customs data showed China’s iron ore imports in January-June rose 9.6 percent to 547 million tons from a year earlier.
Steel prices on the Shanghai Futures Exchange were range-bound. The most-traded October contract of rebar, used in the construction sector, dipped 0.1 percent to 3,730 yuan a ton and hot-rolled coils – materials for the manufacturing sector – fell 0.2 percent to 3,735 yuan per ton.
