The most active contract for the supply of iron ore in September on the Dalyan Commodity Exchange soared 4.5% to a historical maximum of 778.5 yuan ($ 112.65) per ton shortly after the market opened at 01:00 GMT and a rise of 2, 6% at 764 yuan.
He reached a daily upper limit of 6% in the previous session.
Prices rose as investors expect that supply will not improve in the second half of the year after production disruptions at large iron ore facilities in Australia and Brazil.
“After several weeks of waiting after a cyclone in Western Australia and a fatal accident in Valais, the market lost hope of increasing supply in the near future, but expectations of high demand remain, which pushed prices up,” said the purchasing manager. with a steel plant in the upper steel city of Tangshan in China.
On Monday, China announced that it would allow local governments to use special bond revenues as capital for large investment projects in an attempt to support a slowdown in the economy.
It is expected that more infrastructure projects will be launched, such as highways, gas, electricity and railways, which will increase steel consumption and, consequently, the demand for steelmaking raw materials.
Meanwhile, on the market on Tuesday, it was said that Australian iron ore producer Rio Tinto informed some buyers bound by long-term contracts in China that part of the supply with Pilbara Fines' flagship product in July and August would be replaced by a lower one. Variety of products.
But the talk has heightened concerns about the lack of supply of some iron ore products in the Chinese market.
Shanghai rebar futures in Shanghai changed their previous growth and closed 0.2% to 3776 yuan per ton, while the contract for hot-rolled steel remained almost unchanged - 3620 yuan.
Dalian coking coal fell 1.4% to 1,399 yuan, and coke futures fell 2.3% to 2,114.5 yuan.
