* Chinese iron ore firm for third day on demand hopes
* Market gives up some gains as U.S. dollar stabilises
By Naveen Thukral
SINGAPORE, Feb 9 Iron ore futures in China
gained further on Thursday, rising for six of eight sessions,
with values underpinned by signs of strong demand in world's top
steel consumer China.
Resumption of construction activity after the Lunar New Year
break is boosting demand for steel and other raw materials,
"On Tuesday and Wednesday we saw iron ore transactions in
the spot market as buyers are restocking after the holidays,"
said Wang Di, an analyst at CRU consultancy in Beijing.
Investors in the iron ore market expect economic data in the
coming weeks to show the world's second-largest economy got off
to a good start in 2017.
Steady growth is giving the central bank room to slowly
tighten monetary policy and contain the risks from high levels
of debt. The market will seek further direction from trade data
due on Friday.
The most-active rebar contract on the Shanghai Futures
Exchange was up 1.3 percent at 3,239 yuan a tonne. The
market has risen for three consecutive sessions.
Iron ore on the Dalian Commodity Exchange gained
1.1 percent to 643 yuan.
China's foreign exchange regulator said on Wednesday that
risks from cross-border capital flows will be generally under
control in 2017, a day after the country reported that its forex
reserves had fallen to near six-year lows.
Chinese authorities have taken a raft of steps in recent
months to curb capital flight from the country to support its
weakening yuan currency, while trying to bring in more foreign
The iron ore market gave up some of the earlier gains as the
The dollar managed to stabilise on Thursday after the
previous session's slide, although lingering risk aversion
pinned Treasury yields near multi-week lows and restrained the
In news Rio Tinto, shrugged off concerns on
Wednesday that its sale of Guinea's Simandou project to Chinalco
had stalled after an investigation into payments to a
consultant who helped it win rights to the huge iron ore
Iron ore for delivery to China's Qingdao port .IO62-CNO=MB
rose 0.3 percent on Wednesday, according to Metal Bulletin.
(Reporting by Naveen Thukral; Editing by Sunil Nair and Sherry