Dalian iron ore futures increased at the second meeting on Thursday as market sentiment improved after the removing of production restrictions in important steelmaking cities and the receipt of better-than-expected production data from China.
China's leading steelmaking centers Handan and Tangshan removed pollution restrictions on Wednesday after air quality improved.
The most traded May iron ore futures contract on the Dalian Commodity Exchange (DCE) increased to 912.5 yuan ($132.19) per tonne, reaching its highest level since February 3, ending daytime trading up 1.56%.
An analyst said that "The removing of production restrictions has partially contributed to increasing iron ore futures prices this morning. In addition, steel mills' iron ore inventories supported prices by remained at a relatively low level."
On the Singapore Exchange, the average April iron ore price decreased 0.03% to $126.05 per tonne.
Other steelmaking materials coke and coking coal exhibited different tendencies. Coking coal DCJcv1 increased by 0.63%, while coking coal decreased by 0.44%.
The increase in the demand for steel products in March and April increased the raw steel material production.
Transactions of construction rebar products across the country amounted to 204,025 tons on March 1, marking a weekly increase of 33.06%.
Rebar on the Shanghai Futures Exchange increased 0.64%, hot rolled coil increased 0.77% and wire rod increased 0.1%.
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