China iron ore futures pick up after factory activity unexpectedly expands

According to Mining News Pro - China`s official Purchasing Managers` Index (PMI) jumped to 52 this month from a record low in February, beating analysts` expectations of 45.0, the National Bureau of Statistics said.

That helped the Dalian Commodity Exchange`s most-traded May iron ore futures contract gain as much as 1.2% to 653 yuan ($92.08) per tonne.

Steel futures on the Shanghai Futures Exchange also clawed back from Monday`s loss, with construction rebar edging down 0.03% to 3 410 yuan per tonne while hot-rolled coil rose 0.5% to 3 273 yuan per tonne, as of 0220 GMT.

But the statistics bureau warned the pick-up in PMI this month does not suggest the economy has returned to normal.

"The companies` production resumption had not yet returned to the level before the coronavirus," the statistics bureau said in a statement along with the data, adding that the spreading epidemic overseas had brought new challenges to the country`s economy.