* Chinese steel producers have cut prices in response to weaker yuan
* Disruptions in iron ore flow from Tianjin port after explosions
By Manolo Serapio Jr
MANILA, Aug 13 (Reuters) - Iron ore futures in China jumped nearly 4 percent on Thursday to their highest in more than five weeks, extending recent gains on hopes stronger steel exports from China courtesy of a weaker yuan would support demand for the raw material.
Chinese steel producers have already cut export prices in response to a lower yuan, industry sources said, providing some of the first evidence of how Beijing's devaluation will help companies in the world's second-biggest economy boost sales.
The flow of iron ore stocks from China's northeastern Tianjin port had been disrupted, traders said, following two massive explosions.
Iron ore for January delivery on the Dalian Commodity Exchange climbed as far as 388 yuan ($61) a tonne, the highest since July 6. It was up 3 percent at 385 yuan by midday.
Iron ore futures on the exchange, the world's most liquid derivatives market for the steelmaking raw material, have been gaining this week after China's surprise devaluation of the yuan, which critics see as Beijing's bid to boost exports.
Falling domestic demand has fuelled steel exports from the country, with shipments in July reaching 9.73 million tonnes, near the record high of 10.29 million tonnes in January.
"While the decision to weaken the renminbi was seen as a one-off, policymakers and central bankers still have a number of options available as they try in vain to kick-start the Chinese economy," Sucden Financial analyst Kash Kamal said in a note.
"Further intervention and capital support could in turn shore up spot iron ore prices."
Iron ore for immediate delivery to the Tianjin port was little changed at $55.80 a tonne on Wednesday, according to The Steel Index. The spot benchmark hit a one-month high of $56.40 last week.
A cargo of global miner Rio Tinto (LONDON:RIO)'s 61-percent grade Pilbara iron ore fines was sold at $55.61 a tonne in a tender on Wednesday, traders said, largely in line with last week's sales of the same grade.
In Tianjin, the explosions that killed 17 people and injured as many as 400, have restricted transport of iron ore stocks at the port, said a Shanghai-based trader.
Operations at the north and south parts of the port have been temporarily stopped, he said, citing information received from authorities probing the blasts. About 7 million tonnes of iron ore are stored at these parts of the Tianjin port, he said.
"There's a lot of floating articles in the air and transportation has been restricted. If you want to take delivery from the port, you will be affected," he said.
A Tianjin port official said the port is operating normally.
Rebar and iron ore prices at 0431 GMT
Contract
Last
Change Pct Change SHFE REBAR JAN6
2083
+22.00
+1.07 DALIAN IRON ORE DCE DCIO JAN6
385
+11.00
+2.94 SGX IRON ORE FUTURES SEP
52.4
+0.96
+1.87 THE STEEL INDEX 62 PCT INDEX
55.8
-0.10
-0.18 METAL BULLETIN INDEX
56.31
+0.09
+0.16
Dalian iron ore and Shanghai rebar in yuan/tonne Index in dollars/tonne, show close for the previous trading day ($1 = 6.4075 Chinese yuan)