* 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 jumped
more than four percent to rebound from two-week lows on Tuesday,
tracking a similar spike in steel prices as more investors
returned from a week-long break, but some traders say slow
physical demand may limit the upward momentum .
Chinese Premier Li Keqiang's comments about the world's No.
2 economy showing positive changes in the third quarter also
helped boost sentiment.
There has also been a diversion of funds from property
markets to commodity futures, said Helen Lau, analyst at
Argonaut Securities. China has stepped up efforts to curb home
purchases to temper rising prices.
The most-active rebar contract on the Shanghai Futures
Exchange closed up 4.1 percent at 2,339 yuan ($351) a
tonne. 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 4.3 percent to end at the day's peak
of 422 yuan, after touching a two-week low of 398 yuan in the
But a Shanghai-based iron ore trader said he hasn't seen
much restocking of the raw material so far.
"People are just checking around for prices and we have not
seen firm business on our side," he said.
He added that the Chinese authorities continue to order
mills to either curb or halt output as Beijing tackles
overcapacity in the sector, causing a potential drag on iron ore
Chinese authorities this year have carried out frequent
environmental inspections of steel mills that have forced
producers to reduce or stop production for a certain period of
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 and