Iron ore price rises amid rising steel futures

Iron ore prices have risen again since the beginning of the week following a rise in steel prices.

The most traded September iron ore futures contract on the Dalian Commodity Exchange (DCE) fell in the morning but rose 0.5% in the afternoon before closing, compared to Monday's close at 1,225 yuan ($ 189) a tonne.

According to Fastmarkets MB, a 62% iron benchmark ore imported to North China changed hands at $ 222.36 a ton on Tuesday, up 0.3% from Monday's close.

August stainless steel contracts on the Shanghai Stock Exchange rose 2.2% to RMB 16,880 a tonne.

"Futures are stronger than spot prices as the market currently has relatively strong expectations for production constraints," GF Futures said in a statement.

“Given that spot prices are supported by costs… (steel) will continue to fluctuate at a high level,” added GF.