* China's economy showed positive changes in Q3 - Premier Li
* Slow iron ore restocking so far - trader
By Manolo Serapio Jr
MANILA, Oct 11 Chinese iron ore futures
rebounded from two-week lows on Tuesday, tracking similar gains
in steel prices as more investors returned from a week-long
break, but some traders say the upward momentum may be limited
by slow physical demand.
Helping to boost sentiment, Chinese Premier Li Keqiang said
the world's No. 2 economy showed positive changes in the third
quarter and the country's debt risks are under control.
There has also been a diversion of funds from property
markets to commodity futures, said Helen Lau, analyst at
Argonaut Securities, amid sustained efforts by China to curb
home purchases to temper rising prices.
The most-active rebar contract on the Shanghai Futures
Exchange was up 3.2 percent at 2,319 yuan ($348) a
tonne by midday. The construction steel product hit a three-week
trough of 2,209 yuan on Monday when Chinese markets reopened
after a week-long National Day holiday.
On the Dalian Commodity Exchange, the most-traded iron ore
contract climbed 3.5 percent to 418.50 yuan, after
touching a two-week low of 398 yuan in the prior session.
But a Shanghai-based iron ore trader said he hasn't seen
much restocking of the steelmaking raw material so far.
"People are just checking around for prices and we have not
seen firm business on our side," he said.
Chinese authorities this year have carried out frequent
environmental inspections of mills that have forced producers to
reduce or stop production for a certain period of time.
Beijing said on Monday that as many as 173 Chinese steel
enterprises were found to have violated the country's
environmental rules during recent nationwide investigations into
But firmer ferrous futures had helped fuel a recovery in
spot iron ore prices after dropping last week for a sixth week
Iron ore for delivery to China's Tianjin port .IO62-CNI=SI
jumped 2.6 percent to $55.80 a tonne on Monday, according to The
Steel Index, after falling on Friday to the lowest since July 1.
($1 = 6.6685 Chinese yuan)
(Reporting by Manolo Serapio Jr.; Editing by Richard Pullin)