Dalian and Singapore iron ore futures rebounded on Monday after a five-day slump, as a recovery in steel margins in China, the world’s biggest buyer of the steelmaking ingredient, buoyed sentiment.
The most-traded September iron ore on China’s Dalian Commodity Exchange rose as much as 3.1 percent to 1,161.50 yuan ($179.17) a ton.
Iron ore’s most-active August contract on the Singapore Exchange climbed 1.5 percent to $200.25 a ton.
“Plunging iron ore costs and surging steel prices have resulted in a sharp recovery in steel margins, particularly for long products,” Atilla Widnell, managing director at Navigate Commodities in Singapore, said.
