[Ferro-Alloys.com]  Iron ore prices rebounded on Wednesday, with the benchmark contract in Singapore drawing support near $90 per tonne after tumbling to an 11-month low in the previous session on weakening global steel demand.

While worries about a looming global recession and a struggling Chinese economy persist, some support for the steelmaking ingredient has emerged amid lower exports from top suppliers Australia and Brazil this month.

The most-traded January iron ore on China's Dalian Commodity Exchange DCIOcv1 ended morning trade 1.2% higher at 679 yuan ($93.04) a tonne. It hit a seven-week low of 662.50 yuan on Tuesday.

On the Singapore Exchange, benchmark November iron ore SZZFX2 was up 1.2% at $89.85 a tonne, as of 0341 GMT. It climbed as much as $90 earlier in the session, after sinking below $89 the day before.

Iron ore exports from Australia this month totalled 61.9 million tonnes so far, compared with 76.8 million tonnes in September, Refinitiv data showed. Exports from Brazil totalled 23.4 million tonnes, down from September's 31.8 million tonnes.

Poor demand brought portside iron ore inventory in China to 131.2 million tonnes, as of Oct. 21, marking its first weekly rise after steadily declining for five weeks, SteelHome consultancy data showed. SH-TOT-IRONINV

While price support has emerged, a meaningful rebound is unlikely for iron ore, analysts said.

"Weak steel demand is weighing on prices across the globe," ANZ commodity strategists said in a note. "The U.S. has led the decline, down almost 50%. Most other regions have seen declines between 20-25%."

Steel mill margins in China have turned negative, they said.

Chinese steel prices also rebounded, albeit modestly. Rebar on the Shanghai Futures Exchange SRBcv1 gained 0.8%, hot-rolled coil SHHCcv1 climbed 1% and wire rod SWRcv1 advanced 0.7%. Stainless steel SHSScv1 dipped 0.2%.

Dalian coking coal DJMcv1 slipped 0.6%, but coke DCJcv1 rose 0.8%.

Source: Oct 26 (Reuters) 

• [Editor:tianyawei]