MANILA: Iron ore futures jumped on Thursday, with Dalian prices climbing more than 3% and the Singapore benchmark up for an eighth straight session, as more signs of improving downstream steel demand in China supported prices. The most-traded iron ore for September delivery on the Dalian Commodity Exchange rose as much as 3.3% to 913.50 yuan ($131.75) a tonne in early trade.
Iron ore's September contract on the Singapore Exchange was up 2.1% at $114.60 a tonne. Rising car and excavator sales in China further buoyed sentiment, analysts at Beijing-based Sinosteel Futures Co Ltd said in a note.
"Good car sales data shows that domestic demand is improving, and excavator sales also mean that the construction machinery industry and infrastructure are improving," they said. Sales volume of China's automobile industry in July was estimated at 2.08 million, up 14.9% from a year earlier, while excavator sales increased by more than 40%, they said.
Benchmark 62% iron ore's spot price in China stood at a 12-month high of $116.50 a tonne on Wednesday, data from SteelHome consultancy showed. Construction steel rebar on the Shanghai Futures Exchange was up 1% by 0142 GMT. Hot-rolled coil, steel used in cars and home appliances, rose 0.4%, while stainless steel advanced 1.7%.
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