SINGAPORE (Reuters) - Iron ore futures traded on the Dalian exchange hit their highest levels in more than a week on Monday, supported by improving short-term demand prospects for the steelmaking raw material in top consumer China.

The September iron ore contract ended daytime trading up 0.5% at 706 yuan (US$98.25) a metric ton.

Earlier in the session, prices rose to 709.5 yuan, their highest point since June 13.

Iron ore on the Singapore stock exchange was up 0.6% at US$94 a ton at around 8 a.m. EST.

Hot metal production, an indicator of iron ore demand, rose 0.24% in the previous week to 2.422 million tons by June 20, according to data from Chinese consultancy Mysteel.

“In the short term, hot metal production will remain stable, supporting iron ore prices,” said broker Everbright Futures.

Meanwhile, demand in China is entering the off-season, with consumption of construction materials already weakened, said broker Galaxy Futures.

Source: Notícias Agrícolas