October 22, 2019 / 3:04 AM / 23 days ago

China iron ore futures extend gains as Vale dam shutdown woes linger

* Dalian iron ore rose as much as 1.2% in morning trade

* Spot 62% iron ore steady at $86.5 a tonne

* Vale temporarily shut down Itabiruçu tailings dam

BEIJING, Oct 22 (Reuters) - China’s iron ore futures extended gains to the third session due to continued supply worries, after top global iron ore miner Vale SA halted a tailing dam earlier this month, and lowered full year iron ore and pellet sales guidance.

The Brazilian mining giant said on Monday it had temporarily closed its Itabiruçu tailings dam to assess the structure’s “geotechnical characteristics”, lowering its full year sales guidance between the lower end and midpoint of previous range of 307 and 332 million tonnes.

Shipments from Brazil and Australia stood at 19.66 million tonnes on the week ended Oct. 20, down by 1.2 million tonnes compared with the week earlier, according to data from Mysteel consultancy.

The most-traded iron ore contract on the Dalian Commodity Exchange, for January 2020 delivery, rose as much as 1.15% to 618 yuan ($87.34) per tonne in morning trade. It climbed 0.33% to 613 yuan as of 0229 GMT.

Benchmark spot 62% iron ore for delivery to China SH-CCN-IRNOR62 remained unchanged at $86.5 a tonne from previous two sessions.

FUNDAMENTALS

* The most-active construction steel rebar contract on the Shanghai Futures Exchange, for January delivery inched up 0.06% to 3,298 yuan a tonne.

* Hot-rolled coil, the steel used in cars and home appliances, rose 0.03% to 3,294 yuan per tonne.

* Shanghai stainless steel futures, for February 2020 delivery, edged down 0.3% at 14,855 yuan.

* Other steelmaking raw materials fell, with Dalian coking coal trading down 0.2% at 1,235 yuan a tonne, while coke slid 0.86% to 1,739 yuan

* For the top stories metals and other news, click TOP/MTL or MET/L ($1 = 7.0760 Chinese yuan renminbi) (Reporting by Min Zhang and Dominique Patton; editing by Rashmi Aich)

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