* Dalian iron ore surges past $100/tonne, up for seventh day
* Benchmark spot 62% iron ore hits highest since August 2019
* China to simplify customs inspections on iron ore imports (Recasts, updates with chart and closing prices)
By Enrico Dela Cruz
MANILA, May 21 (Reuters) - Dalian iron ore futures surged past $100 a tonne on Thursday, recovering lost ground as concerns about tightening supply of the steelmaking commodity from coronavirus-hit Brazil prevailed over a bleak outlook for global steel demand.
Iron ore on the Dalian Commodity Exchange DCIOcv1 closed 2.1% higher at 722 yuan ($101.67) a tonne, rising for a seventh straight session.
The Singapore Exchange's front-month contract also clawed back early losses, up 1.7% at $95.42 a tonne in afternoon trade.
After Brazilian iron ore miner Vale SA VALE3.SA cut its 2020 production outlook to 310 million-330 million tonnes, from 340 million-355 million tonnes previously, "more downgrades may be on the way as COVID-19 infections accelerate in Brazil's key mining provinces", said Morgans Financial Ltd in a note.
Hopes of more government stimulus to prop up China's economy added fuel to the rally that has pushed the Dalian benchmark up over 20% this year.
Benchmark spot 62% iron ore bound for China climbed to $98.20 a tonne on Wednesday, the highest since Aug. 6, SteelHome consultancy data showed. SH-CCN-IRNOR62
Iron ore's advance, however, "looks increasingly stretched" as the market faces downside risks such as a sharp fall in global steel demand this year and increased shipments from Brazil and Australia when the pandemic eases, ANZ commodity strategists said.
FUNDAMENTALS
* Concerns emerged that the flow of Australian iron ore to China could also be hampered because of trade tensions between the two countries.
* The Australian government, however, said the change in China's iron ore inspection procedures, announced on Wednesday, should streamline customs clearance of Australian shipments, reassuring markets worried about their deteriorating ties. Construction steel rebar on the Shanghai Futures Exchange SRBcv1 rose 0.8%, while hot-rolled coil SHHCcv1 gained 0.6% and stainless steel SHSScv1 advanced 1.4%.
* Coking coal DJMcv1 was up 0.4%, while coke DCJcv1 climbed 1.5%.
($1 = 7.1011 yuan)
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Iron ore leads gains in China's ferrous compex
https://tmsnrt.rs/3bP9gjv
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>