SHANGHAI: Benchmark iron ore futures on China's Dalian Commodity Exchange jumped more than 4% on Monday, marking their sixth straight monthly gain, on expectations that demand for steel will remain strong as construction booms. The most-traded futures contract for iron ore, a key steel-making ingredient, for January delivery was last up 2.6% at 844.5 yuan ($123.16) on Monday afternoon, after rising as much as 4.5%. Iron ore is also up 9.3% for the month.
Spot prices of iron ore with 62% iron content for delivery to China rose to a one-week high of $124 per tonne on Friday, SteelHome consultancy data showed. "Iron ore gained as strong demand in China continues to drive shortage concerns, particularly for mid-grade fines," Vivek Dhar, an analyst at Commonwealth Bank of Australia, said in a note.
Dhar added that China's iron ore imports from Australia and Brazil rose in July, "consistent with the narrative the supply disruptions from earlier this year are dissipating."
Meanwhile, stainless steel futures on the Shanghai Futures Exchange rose to a more than 10-month top on Monday, and hot-rolled coils futures prices climbed to an all-time high.
Shanghai stainless steel futures for November delivery increased 1.3% to 15,320 yuan a tonne. Construction rebar on the Shanghai exchange for January delivery also edged up 1.7% to 3,762 yuan per tonne.
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