* Dalian iron ore futures sit tight after dropping 1.9%
* Spot 62% iron ore fell to $87 a tonne
* Shanghai steel futures extend gains to second session
(Adds details and updates closing prices)
By Min Zhang and Tom Daly
BEIJING, Oct 30 (Reuters) - China iron ore futures contract held its ground on Wednesday after falling as much as 1.9% in early trade, fuelled by firm demand outlook despite increasing supplies from big miners.
The most-traded iron ore futures on the Dalian Commodity Exchange DCIOcv1 , for January 2020 delivery, recovered from early losses to trade at 622.5 yuan ($88.18) per tonne, unchanged from previous session.
Shipments of the steelmaking raw material from Brazil and Australia stood at 22.7 million tonnes during the week ended Oct.21-27, according to data compiled by Mysteel consultancy, up by 3 million tonnes from a week earlier.
Steel futures on the Shanghai Futures Exchange, meanwhile, rose for a second day after smog-prone Hebei province issued an orange smog alert effective from this Friday on unfavourable weather. most active construction steel rebar SRBcv1 , for January delivery, gained 1% to 3,373 yuan a tonne.
Hot-rolled coil SHHCcv1 , used in cars and home appliances, closed up 0.6% at 3,365 yuan.
FUNDAMENTALS
* Other steelmaking ingredients for January delivery were mixed, with Dalian coking coal DJMcv1 edging up 0.3% to 1,261 yuan a tonne, while Dalian coke DCJcv1 lost 0.5% to 1,745 yuan a tonne.
* The front-month February 2020 stainless steel futures contract SHSSc1 dipped 0.1% to 15,065 yuan a tonne.
* Benchmark 62% iron ore for delivery to China SH-CCN-IRNOR62 slid to $87 a tonne on Tuesday.
* China Iron and Steel Association said it expected full-year crude steel output at nearly 994 million tonnes, up 7% compared with last year. China's three biggest commodities exchanges said on Tuesday they would end their practice of double-counting trades from Jan. 1, 2020 and report on a single-count basis instead to help them meet international standards. China's Foreign Ministry said on Wednesday that China and U.S. trade negotiators will speak again soon. For the top stories of metals and other news, click TOP/MTL or MET/L
($1 = 7.0591 Chinese yuan)