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, jumped as much as 3.2% to 845 yuan ($120.53) a tonne. The contract closed up 2.4% at 839 yuan per tonne. "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 utilisation rates at blast furnaces remained at high levels.
Spot prices for iron ore with 62% iron content for delivery to China, compiled by SteelHome consultancy, rose by $2.5 to $109.5 per tonne on Monday from the previous trading day.
Customs data showed China's iron ore imports in June hit 33-month high at 101.68 million tonnes, propped up by more shipments from major miners and strong demand outlook. Steel prices on the Shanghai Futures Exchange ended higher. The most traded October contracts of steel rebar and hot-rolled coils increased 0.2% and 0.4%, respectively, recovering from early losses.