Iron ore extends rise

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Dalian iron ore futures prices extended gains into a second consecutive session on Wednesday, helped by renewed hopes of demand recovery in top buyer China following an improving steel market, although persistent worries about its embattled property market capped gains.

The most-traded May iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 1.14 percent higher at 889.5 yuan ($123.56) a metric ton.

“Expectations of stronger construction activity grew. Domestic construction sites have reopened following the Lunar New Year holiday and are looking to take advantage of the better margins following iron ore’s recent decline,” analysts at ANZ bank said in a note.

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Lifting market sentiment is also the improved steel market, analysts said.

Transaction volumes of construction steel products among Chinese traders surveyed grew by 98.3 percent day-on-day to 106,700 tons on Tuesday, data from consultancy Mysteel showed. – Reuters

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