BEIJING- Benchmark iron ore futures in China jumped more than 5 percent on Tuesday, propped up by strong profit margins at mills, while a record high crude steel output suggesting resilient demand for the steelmaking ingredient also boosted sentiment.
The most-traded iron ore contract on the Dalian Commodity Exchange, for September delivery, gained as much as 5.5 percent to 1,256 yuan ($195.26) per ton. It rose 4.6 percent to 1,246 yuan a ton.
“Steel consumption is still at peak season in the shor t term… mills are actively producing driven by high profits, which is supporting raw materials,” analysts with Huatai Futures wrote in a note.