Benchmark iron ore futures on the Dalian Commodity Exchange snapped a three-day slump to gain as much as 2.4% on May 28, boosted by firm demand at steel mills as construction restarts speed up amid the government's consumption stimulus.
The most actively traded September contract of iron ore closed 2.0% higher at 711 yuan/t.
Spot prices of iron ore with 62% iron content for delivery to China gained by $1/t to $97/t on May 27.
"Portside iron ore inventories have been continuously hitting new lows, as the demand is supported by utilisation rates at mills," said a Beijing-based iron ore trader.
The trader said the market is also watching production and shipments data from Brazil, which could spur prices if the coronavirus situation worsens in the second-biggest iron ore supplier to China.
Construction steel rebar on the Shanghai Futures Exchange for October delivery rose 0.4% to 3,498 yuan/t.
Hot-rolled coils (HRC) futures, used in cars and home appliances, ended up 1.2% to 3,447 yuan/t.
Source:sxcoal
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