Iron ore gains as upbeat data outweighs renewed Sino-US trade tension

By Amy Lv and Lewis Jackson

BEIJING, Oct 13 (Reuters) - Iron ore futures gained on Monday as robust steel export in top consumer China, along with lower ore shipments, outweighed concerns over renewed Sino-U.S. trade tensions.

The benchmark November iron ore SZZFX5 on the Singapore Exchange added 0.79% to $107.2 per metric ton, as of 0808 GMT, after touching its highest level since September 22 at $107.45 earlier.

The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) DCIOcv1 rose 1.13% to hit the highest since September 26 at 804.5 yuan ($112.82) a ton.

Prices of the key steelmaking ingredient surrendered earlier loss to trade higher after robust steel exports in September improved sentiment.

Supporting ore prices were lower shipments from major suppliers of Australia and Brazil in the week as of October 12, data from consultancy Mysteel showed.

Moreover, helping prices was firm demand with the average daily hot metal output among Chinese steelmakers at 2.42 million tons in the week as of October 10, 3.6% higher than the same period last year, Mysteel data showed.

But prices gains were curbed by caution on the revived trade spat between the world's two largest economies.

U.S. President Donald Trump unveiled additional levies of 100% on China's U.S.-bound exports, along with new export controls on "any and all critical software" by November 1, after China announced to expand restrictions on rare earth elements, essential to semiconductor and defense sectors.

That earlier dragged down prices, but it also sparked hopes that China would unveil stimulus to counter negative effect on its economic growth, said analysts.

"Fiscal measures may be implemented to mitigate any potential trade-related shocks if needed," ANZ analysts said in a note.

Coking coal DJMcv1 and coke DCJcv1, other steelmaking ingredients, fell 1.63% and 1.14%, respectively.

Steel benchmarks on the Shanghai Futures Exchange lost ground. Rebar SRBcv1 shed 0.77%, hot-rolled coil SHHCcv1 slid 0.88%, wire rod SWRcv1 fell 1.64% and stainless steel SHSScv1 lost 1.59%.

($1 = 7.1310 Chinese yuan)