BEIJING- Benchmark Chinese iron ore futures jumped over 6 percent on Tuesday, fuelled by recent restocking demand at steel firms, although analysts expect weak property and infrastructure investment to slow the long-term consumption of the steelmaking ingredient.
The most-traded iron ore contract on the Dalian Commodity Exchange, for January delivery, was up 2.9 percent at 612 yuan ($96.05) per ton, after rising 6.4 percent to 633 yuan in early trade.
“Driven by high profits at mills… iron ore prices will rebound to some extent,” analysts with Huatai Futures wrote in a note, adding demand was hard to be sustained in the long run on cooling steel consumption.
Spot prices of iron ore with 62 percent iron content for delivery to China rose $3 to $105 a ton on Monday, according to SteelHome consultancy.
