* Shanghai rebar futures fall for seventh day in a row
* Spot iron ore at lowest level since October 2016
By Manolo Serapio Jr
MANILA, June 2 Chinese iron ore futures climbed
more than one percent on Friday, snapping a six-day fall,
although the outlook for the steelmaking raw material remained
bleak amid ample supply.
Weaker steel prices also capped gains in iron ore, with
Shanghai rebar futures down for a seventh session in a row.
The most-traded iron ore on the Dalian Commodity Exchange
closed up 1.9 percent at 429.50 yuan ($63) a tonne.
The contract touched a six-month low of 415 yuan on Thursday and
has lost more than five percent for the week so far.
"Restocking demand was also subdued with reports that
several Chinese steel mills were reselling iron ore cargoes
procured via long-term contracts," Commonwealth Bank of
Australia analyst Vivek Dhar said in a note.
"Elevated Chinese port stocks also weighed on prices."
Imported iron ore at China's ports reached 136.6 million
tonnes on May 26 SH-TOT-IRONINV, the highest since SteelHome
consultancy began tracking the data in 2004. That is enough to
build the Eiffel Tower in Paris more than 13,000 times over.
Iron ore for delivery to China's Qingdao port .IO62-CNO=MB
fell 1.8 percent to $55.97 a tonne on Thursday, the lowest since
October 2016, according to Metal Bulletin.
A brief suspension to mining at BHP's mt
Whaleback mine in Australia due to fire would do little to
counter a mounting supply glut.
The spot benchmark has declined 41 percent from this year's
Also on Friday, the most-active rebar on the Shanghai
Futures Exchange dropped 2.20 percent to 3,026 yuan a
tonne, marking the seventh straight day of declines.
"In the long run, China's steel demand will trend down
despite short-term volatility," Morgan Stanley analysts said in
a report, citing a view by the China Iron and Steel Association.
It was a short trading week in China on account of public
holidays on Monday and Tuesday.
($1 = 6.8144 Chinese yuan renminbi)
(Reporting by Manolo Serapio Jr. and James Regan; Editing by