Dalian iron ore futures extended their gains to a third session on Wednesday, underpinned by prospects of tighter supply of the steelmaking ingredient and optimism over steel demand in China.
The most-traded May iron ore on Chinaās Dalian Commodity Exchange DCIOcv1ended daytime trade 1.5% higher at 890.50 yuan ($129.26)a tonne.
On the Singapore Exchange, however, the most-active May iron ore contract SZZFK3 was little changed at $121.30 a tonne, as of 0717 GMT, after three straight sessions of gains.
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China is considering cutting its crude steel output by about 2.5% this year, Reuters has reported citing two sources familiar with the matter, as it extends a two-year-old policy to reduce emissions by the worldās biggest steel producer.
At the moment, āiron ore consumption is supported by rigid demandā, Huatai Futures analysts said in a note.
Lending further support to iron ore prices, port stockpile of the commodity in China hit its lowest since early February last week, based on SteelHome consultancy data, while daily exports from Brazil have been down so far this month.
Huatai analysts said traders were mindful of the fact that Chinese regulators had been paying āhigh attentionā to elevated iron ore prices, warning repeatedly against excessive market speculation and hoarding.
Rebar on the Shanghai Futures Exchange added 0.7%, hot-rolled coil gained 0.8% and wire rod climbed 0.9%, while stainless steel fell 1.5%.
On the Dalian exchange, coking coal was up 0.5%, but coke dipped 0.6%.
Sentiment was generally upbeat ahead of the China manufacturing purchasing managersā index data due on Friday, as traders await more evidence of economic recovery.
Source: Reuters (Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu and Louise Heavens
