Iron ore extends gains on resilient China demand
The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) traded 0.38% higher at 792 yuan ($110.33) a metric ton, as of 0200 GMT.
The benchmark September iron ore on the Singapore Exchange was 0.3% higher at $101.5 a ton.
Fundamentals of iron ore remained healthy amid firm demand, analysts at broker Shengda Futures said, supporting prices of the key steelmaking ingredient.
Average daily hot metal output, a gauge of iron ore demand, has been hovering around 2.4 million tons since April, even in the off-peak demand season of July and August when output typically contracts.
Data from consultancy Mysteel showed that the output slid to 2.21 million tons by the end of August in 2024.
Additionally, underpinning iron ore prices was also 'hope that efforts to tackle the overcapacity issues in China's steel industry will ultimately improve demand', analysts at ANZ said in a note.
However, price gains were limited by prospects of a possible steel production restriction for a September 3 Beijing ceremony, commemorating the 80th anniversary of the end of World War Two.
Chinese steelmakers, especially those in the northern region, usually constrain production before big events to ensure air quality in Beijing.
That may dent the appetite for raw materials, including iron ore, pressuring prices.
Other steelmaking ingredients on the DCE gained ground, with coking coal and coke up 2.31% and 0.47%, respectively.
Steel benchmarks on the Shanghai Futures Exchange advanced.
Rebar added 0.13%, hot-rolled coil climbed 0.83%, wire rod rose 0.97% and stainless steel gained 0.82%.
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