Iron ore futures rose to three-week highs this week on hopes of a recovery in China's steelmaking material demand in the fourth quarter due largely to steel production cuts since July.
However, Dalian iron ore has dropped nearly 40% since reaching a record high in mid-May, marking the first quarterly loss in about two years and the third consecutive monthly decline.
Iron ore, the most traded on China's Dalian Commodity Exchange, rose 10.7 percent to 758 yuan ($117.13) per ton in early trading, reaching its highest level since September 8.
The most active November contract for iron ore on the Singapore Exchange rose 11.6 percent to $127.80 per ton.
Last week's gains in iron ore futures reflect the recovery in spot prices in China, the world's largest steelmaker, as demand for restocking supports prices due to the country's Golden Week holiday, which began on Oct.
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