BEIJING: Chinese iron ore futures jumped nearly 4% on Tuesday, touching 900 yuan ($135.00) per tonne for the first time in nearly six weeks, as financial hub Shanghai was set to resume operations, lifting hopes of a demand recovery.

Officials in Shanghai announced an end to its two-month lockdown on Monday. The city will move into a normalised epidemic-control phase from Wednesday, allowing shops to reopen and people in “low-risk” area to return to work.

Downstream consumption could gradually pick up after being halted for months amid the recent COVID-19 outbreak, and disappointed metals producers during the traditional peak season for constructions. China’s factory activity declined slower in May from the prior month, though economic growth in the second quarter still under doubts.

The most-active iron ore futures on the Dalian Commodity Exchange for September delivery gained as much as 3.8% to 908 yuan per tonne in morning trade. They were up 2.7% to 898 yuan as of 0330 GMT. The contract was on course to rise 5% in May.

Spot prices of iron ore with 62% iron content for delivery to China, compiled by SteelHome consultancy, was unchanged from the previous session at $136.5 a tonne on Monday. Coking coal futures on the Dalian bourse increased 2.3% to 2,682 yuan a tonne and coke prices were up 2% at 3,496 yuan a tonne.

Steel prices on the Shanghai Futures Exchange were mixed, with construction material rebar for October delivery inching 0.8% higher to 4,650 yuan a tonne and hot rolled coils up 0.8% to 4,764 yuan per tonne.

The July contract of Shanghai stainless steel futures fell 1.5% to 18,240 yuan a tonne.