SINGAPORE, May 6 (Reuters) - Iron ore futures rose on Wednesday as trading resumed in China after the May Day holiday, amid expectations that demand for the steelmaking raw material will increase in the summer due to a recovery in construction activity and the resumption of blast furnace production.

The most actively traded September iron ore contract on China's Dalian Commodity Exchange (DCE) closed the day up 2.84% at 816 yuan ($119.67) a tonne.

The benchmark June iron ore contract on the Singapore Exchange rose 1.93% to $110.60 a tonne.

Demand for steel is expected to increase after the five-day holiday in China, with blast furnaces likely resuming operations after holiday maintenance, Chinese brokerage Galaxy Futures said in a note on WeChat.

Iron ore prices were also supported by increased volatility in metallurgical coal and coke prices, driven by higher energy demand as summer approaches, said Galaxy Futures.

The brokerage added, however, that high iron ore imports and weaker overall steel demand weighed on price gains.

From April 27 to May 3, iron ore arrivals at 47 Chinese ports increased by 2.15 million tons compared to the previous week, according to data from consultancy Mysteel.

Despite marginal improvements in the last two months, steel demand remains weak, as consumption of steel products has fallen week after week, said Liu Huifeng, chief researcher of ferrous metal futures at Donghai Futures.

Although steel prices have recovered, rising energy and raw material prices are putting pressure on steel mill margins, which are already declining, he said.

(Reporting by Ruth Chai)

Source: Notícias Agrícolas