SINGAPORE, March 10 (Reuters) - Iron ore futures closed higher on Tuesday, reversing earlier losses, boosted by an expected increase in pig iron production due to the resumption of construction activity in China, stimulating demand for the raw material.

The most actively traded May iron ore contract on China's Dalian Commodity Exchange (DCE) rose 0.26% to 784 yuan ($113.95) a tonne.

The benchmark April iron ore contract on the Singapore Exchange advanced 0.76% to $103.85 a tonne.

Pig iron production is expected to increase in China after March 11, when the government will lift production restrictions imposed during the annual parliamentary meeting, leading to greater appetite for the raw material for steelmaking.

Demand for steel in China typically increases in March, with construction activities resuming amid warmer weather.

China's iron ore imports in the first two months of 2026 grew 10% year-on-year, customs data showed on Tuesday, thanks to stronger exports from its main supplier, Australia, and increased domestic demand.

During the same period, pig iron production increased 1.2% year-on-year, and steel exports decreased 8.1%.

The total amount of iron ore arriving at 47 ports in China increased from March 2nd to 8th, according to data from consultancy Mysteel.

Furthermore, iron ore shipments destined for the Middle East are being diverted to China amid disruptions in the Strait of Hormuz.

However, iron ore shipments from major Brazilian and Australian miners also decreased on a weekly basis between March 2 and 8, which could contain the fall in prices.

(Reporting by Ruth Chai)

Source: Notícias Agrícolas