* Shanghai rebar hits two-month high
* Chinese steel mills getting "quite good" level of orders
By Manolo Serapio Jr
MANILA, Feb 13 Iron ore futures in China surged
nearly 6 percent to their highest in more than three years on
Monday, tracking firmer steel prices as investors bet demand for
the building material would remain strong.
Both commodities stretched last week's gains and traders
said the uptrend could continue in the short term.
"Mills' booking orders are quite good and they're trying to
produce as much as possible," said an iron ore trader in
"People are expecting demand in the spring will be strong."
The most-active rebar on the Shanghai Futures Exchange
was up 4.1 percent at 3,428 yuan ($498) a tonne by 0302
GMT. It earlier rose as far as 3,441 yuan, its loftiest since
December last year.
Iron ore outpaced the construction steel product, with the
most-traded contract on the Dalian Commodity Exchange
climbing as much as 5.8 percent to 706.50 yuan a tonne, its
highest since December 2013. It was last up 5.5 percent at
Chinese steel mills were also replenishing their stocks of
iron ore after the Lunar New Year break earlier this month,
China said it would continue to push its "One Belt, One
Road" initiative - promoting infrastructure projects along
historical land and sea trade routes - and deepen cooperation
with countries along the belt.
The country will also invest over one trillion yuan ($145.30
billion) in transport in 10 mid-west provinces this year as part
of a poverty-reduction plan, the Economic Information Daily
newspaper reported, citing the local government.
Iron ore for delivery to China's Qingdao port .IO62-CNO=MB
jumped 3.3 percent to $86.62 a tonne on Friday, its strongest
since August 2014, according to Metal Bulletin.
($1 = 6.8824 Chinese yuan)
(Reporting by Manolo Serapio Jr.; Editing by Joseph Radford)