BEIJING, Sept 24 (Reuters) - China's benchmark iron ore futures gained for the second straight session on Friday, rising more than 4% following gains in spot market, though demand for the steelmaking ingredient is expected to stay cool amid environment-related curbs.
The most-traded iron ore futures on the Dalian Commodity Exchange, for January delivery, gained as much as 4.2% to 696 yuan ($107.74) per tonne in morning session. They closed up 2.5% on Friday and gained 8.8% this week.
Spot prices of iron ore with 62% iron content for delivery
to China
However, analysts expect the rebound will not last as iron ore demand is still dampened by production cuts at mills.
"Affected by the autumn-winter environmental protection measures and winter Olympic games, domestic iron ore consumption is hard to increase in short term," analysts with Huatai Futures wrote in a note.
Dalian coking coal futures fell 6.24% to 2,800 yuan per tonne and coke prices plunged 7.6% to 3,198 yuan a tonne.
Steel prices on the Shanghai Futures Exchange also declined.
Construction used rebar slipped 2.8% to 5,468 yuan a tonne.
Hot rolled coils, used in cars and home appliances, fell 2.9% to 5,511 yuan per tonne.
Stainless steel futures, for October delivery, dived 4.7% to 20,945 yuan a tonne.
($1 = 6.4601 Chinese yuan renminbi) (Reporting by Min Zhang and Shivani Singh; Editing by Rashmi Aich)
