China's iron ore futures surged on Tuesday, with the benchmark Dalian price of the key steelmaking ingredient scaling a two-week high, after data showed factory activity in the world's biggest steel producer unexpectedly expanded in February.
The official manufacturing Purchasing Manager's Index remained above the 50-point mark last month, pointing to some resilience in the world's second-largest economy despite downward pressure and global uncertainty amid the Russia-Ukraine conflict.
The China market bounce was broad-based, with other ferrous materials also advancing following fresh pro-growth rhetoric from Beijing ahead of the annual Two Sessions meeting of its top legislative body beginning March 5, during which it will unveil economic targets for the year.
The most-traded May iron ore contract on China's Dalian Commodity Exchange DCIOcv1 rose as much as 5.3% to 736 yuan ($116.60) a tonne, its highest since Feb. 15, and following a 12.4% slump over the whole month of February.