Benchmark iron ore futures on the Dalian Commodity Exchange bounced back on Thursday, gaining as much as 2.4% to 713 yuan ($99.52) per tonne, on firm demand at mills amid accelerating construction restarts and the government’s consumption stimulus.
The most actively traded September contract of iron ore was up 2.1% at 711 yuan a tonne, as of 0215 GMT.
Spot prices of iron ore with 62% iron content for delivery to China gained by $1 to $97 per tonne on Wednesday.
“Portside iron ore inventories have been continuously hitting new lows, the demand is supported by utilisation rates at mills,” said a Beijing-based iron ore trader.
The trader said market is also watching out for production and shipments from Brazil, which could spur iron ore prices if the coronavirus situation worsened there.
Brazil, the second-biggest iron ore supplier to China, had reported more than 25,000 deaths from the disease.
Construction steel rebar on the Shanghai Futures Exchange , for October delivery, rose 0.6% to 3,504 yuan per tonne.
