BEIJING: Benchmark iron ore futures in China advanced more than 3% on Wednesday, hitting their highest in eight months, as trading resumed after the Tomb Sweeping Festival holidays.

The most-active iron ore futures on the Dalian Commodity Exchange, for September delivery, rose 3.3% to 937 yuan ($147.16) a tonne, the highest since Aug. 5, 2021, as demand at steel producers recovers from pandemic disruptions. Spot prices of iron ore with 62% iron content for delivery to China, compiled by SteelHome consultancy, stood at $159.5 a tonne on April 2.

“Currently, the sluggish property market in China has dented steel and iron ore consumption... but iron ore destocking has started,” analysts with Huatai Futures wrote in a note. Portside iron ore inventories in China were at 155.6 million tonnes in the week ended April 1, down by 4 million tonnes from a week earlier and 3.3% from the peak in mid-February, according to SteelHome.

With expectations that China will stabilise its economy andstimulate the real estate sector, iron ore demand is seen to be rising, the Huatai analysts said. Other steelmaking ingredients on the Dalian bourse also gained. Coking coal, for May delivery, inched up 0.6% to 3,238 yuan a tonne and coke prices leapt 2.2% to 4,053 yuan per tonne. Construction material steel rebar on the Shanghai Futures Exchange, for October delivery, increased 0.5% to 5,136 yuan a tonne. “Downstream demand (of steel rebar) has been postponed due to the pandemic,” SinoSteel Futures said in a note, adding that consumption would recover amid relatively easy credit. Hot-rolled coils futures, used in the manufacturing sector, were up 0.2% at 5,286 yuan a tonne. The May contract of Shanghai stainless steel futures jumped 1.4% to 20,530 yuan per tonne.