* Spot iron ore tops $70/tonne for first time since Jan 2015
* Shanghai rebar cuts gains after rising by 6-pct limit
* Coking coal slips after hitting record high
By Manolo Serapio Jr
MANILA, Nov 10 (Reuters) - Iron ore futures in China surged by their 9-percent limit on Thursday to hit a 30-month peak, extending a recent rally backed by strong coking coal markets as well as steel prices.
Higher fees imposed by the Dalian Commodity Exchange on trading of coking coal and coke futures have diverted some funds into iron ore, traders and analysts said, helping iron ore outperform the rest of the ferrous market.
Spot iron ore topped $70 a tonne on Wednesday for the first time since January 2015, reflecting firm demand for high-grade cargoes as Chinese mills boost efficiency amid costlier coal, and could track further gains in futures.
The most-traded January iron ore on the Dalian exchange DCIOcv1 was up 5.9 percent at 571.50 yuan ($84) a tonne by midday. It hit its upside limit of 588 yuan earlier, its loftiest since April 2014.
While there is "no big rush" among Chinese steel mills to buy iron ore cargoes, "supply of high grade is limited, so it's natural to see prices rise", said an iron ore trader in Shanghai.
"Clients are now only looking for high grade and are showing no interest for low grade," he said.
Iron ore for delivery to China's Tianjin port .IO62-CNI=SI surged 4.7 percent to $71 a tonne on Wednesday, according to The Steel Index. That was the biggest single-day gain in two weeks for the spot benchmark which has risen almost 66 percent this year.
There was renewed interest in iron ore futures after the Dalian exchange this week raised margins and fees for coking coal and coke following recent rapid gains.
"Recent curbs on coal futures trading were seen diverting funds back into (iron ore)", ANZ Bank said in a note.
Dalian coking coal DJMcv1 was down 0.5 percent at 1,488 yuan a tonne after hitting a fresh record high of 1,608.50 yuan. Coke DCJcv1 trimmed gains, up 0.7 percent at 2,072 yuan per tonne after peaking at 2,205 yuan, its strongest since February 2013.
Steel futures also came off session highs. Construction steel product rebar on the Shanghai Futures Exchange SRBcv1 was last up 0.7 percent at 2,963 yuan a tonne, after rising by its 6-percent limit to 3,119 yuan, the highest since August 2014.
($1 = 6.7904 Chinese yuan)