Iron Ore Extends Gains Amid Steel Optimism, Dwindling Stockpiles

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Photographer: Ian Waldie/Bloomberg
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Iron ore futures rose for a second day amid demand optimism in the wake of robust output data from China and lower inventory levels.

Steel mills in China are ramping up production to benefit from elevated prices, with the nation churning out crude steelBloomberg Terminal, putting China on track for record output this year. In another sign for a strong demand, stockpiles for rebar continued to drop, while iron-ore port inventories declined for the third consecutive week.