* Dalian Exchange calls for rational trading
* Fundamental situation of iron ore remain bullish- analysts (Updates closing prices)
BEIJING, May 23 (Reuters) - China’s iron ore futures extended gains on Thursday, but the upside was capped as the Dalian Exchange called for a rational trade after hitting a fresh record high in the previous trading session.
The bourse on Wednesday night warned of a complex and variable economic and financial situation at home and abroad and urged members to strengthen risk management.
The most-active iron ore futures on the Dalian Commodity Exchange climbed 0.9% to 728.5 yuan ($105.36) a tonne. It advanced as much as 4.1% to 733 yuan on Wednesday.
Fundamental situation of the steel-making raw material remains bullish, which would continue to support the already-elevated prices, said analysts from CITIC Futures in a note.
“With robust demand from steel mills and falling shipment arrivals from overseas miners to Chinese ports in May and June, iron ore inventory will keep decreasing.”
Stocks of imported iron ore at ports have hit the lowest level since October 2017 at 131.7 million tonnes, data compiled by SteelHome consultancy showed.
Benchmark Shanghai rebar was in red throughout Thursday, dragging coking coal and coke prices, as mounting tensions between Washington and Beijing dented investors’ confidence.
China’s President Xi Jinping urged the country to prepare for difficult times as the international situation was complex, in the wake of blacklist by the U.S. on Chinese telecom equipment giant Huawei Technologies.
Meanwhile, the U.S. administration is considering Huawei-like sanctions on Chinese video surveillance firm Hikvision, the latest effort by the Trump administration to crack down on Chinese companies.
Construction steel rebar slid 0.6% to 3,881 yuan a tonne.
Dalian coking coal futures fell 0.9% to 1,392 yuan a tonne, while coke futures, which jumped to an eight-month high on Wednesday, dropped 1.7% to 2,264 yuan.
$1 = 6.9143 Chinese yuan Reporting by Muyu Xu and Shivani Singh; editing by Uttaresh.V and Subhranshu Sahu