* Weaker yuan seen pushing onshore funds to dollar-linked assets
* Rebar at highest since April, coke strongest since 2013
By Manolo Serapio Jr
MANILA, Nov 2 (Reuters) - Iron ore futures in China rose to the highest in more than two years on Wednesday, supported by stronger steel and coal prices and a mending Chinese economy.
Activity in China's manufacturing sector expanded at the fastest pace in over two years in October thanks to a construction boom, according to data released on Tuesday. ore for January delivery on the Dalian Commodity Exchange DCIOcv1 climbed as far as 509 yuan ($75) a tonne, its loftiest since July 2014.
By 0223 GMT, the contract had eased 0.2 percent to 499.50 yuan, in line with a retreat in other Chinese traded commodities such as aluminium SAFcv1 and rubber SNRcv1 after recent gains.
Dalian iron ore gained 24 percent in October, driving a 16 percent increase in spot iron ore prices.
Iron ore for delivery to China's Tianjin port .IO62-CNI=SI rose 0.9 percent to $64.40 a tonne on Tuesday, the highest since April 29, according to The Steel Index.
Traders have mostly attributed iron ore's climb to the strength in coal prices as mills sought higher grade iron ore to be able to use less coal.
But Goldman Sachs (NYSE:GS) said it may have more to do with the recent weakness in the yuan.
"A rising dollar/yuan led onshore investors to seek dollar-linked assets such as commodities and iron ore may be the first in line to benefit from such investment flows," Goldman analysts said in a report.
There may be further room for the yuan to depreciate given the high likelihood of the U.S. Federal Reserve hiking interest rates in December, they said.
"With ample onshore money supply chasing a limited menu of accessible dollar-linked assets, continued yuan depreciation means that iron ore prices may stay above what the fundamental demand and supply suggest in coming months," Goldman analysts said.
Steel and coal futures remained strong on Wednesday. The most-active rebar, a construction steel product, on the Shanghai Futures Exchange SRBcv1 was up 1.2 percent at 2,637 yuan a tonne after touching 2,665 yuan earlier, the highest since April 25.
January Dalian coking coal DJMcv1 rose 2.3 percent to 1,320.50 yuan a tonne, after touching a contract high of 1,348.50 yuan. Dalian coke DCJcv1 was up 1.8 percent at 1,817 yuan, after earlier hitting 1,843 yuan, its strongest since March 2013. ($1 = 6.7643 Chinese yuan)