Iron ore rises on expected Chinese steel mill restocking

Iron ore gained ground on Monday, according to Business Recorder, as traders anticipated that Chinese steelmakers would restock after a week-long holiday. Gains were held back, however, by the prospect of more supply from miners in the fourth quarter. The most-traded contract on the Dalian Commodity Exchange climbed 0.15% to 684.5 yuan ($102.27) a metric ton by 0158 GMT.

The benchmark November contract in Singapore was 0.67% higher at $91.2 a ton by 0148 GMT. Restocking in the three working days after China's National Day break came in under expectations, as some mills remained wary of buying feedstock with thin margins. Analysts at First Futures said in a note that cheaper spot coke may ease steel producers' losses and could slow output cuts, which would also support ore prices.

Coking coal and coke futures advanced 2.21% and 1.78%, respectively, as worries over a slow supply recovery persisted. Several mines in Shanxi were shut for tougher safety checks after a deadly accident in May. On the Shanghai Futures Exchange, rebar rose 0.45% and hot-rolled coil added 0.22%, while stainless steel fell 0.63%.