* Dalian iron ore jumps 4%, Singapore futures up 2.3%
* China's iron ore port stocks down 3.4% so far this year
* Brazil's Vale says iron ore mine near dam erodes further
* China's Valin Steel plans 21-day blast furnace shutdown
By Enrico Dela Cruz
MANILA, March 10 (Reuters) - Ferrous futures in China rebounded on Tuesday, led by a 4% jump in iron ore as declining stockpiles of the steelmaking raw material at the country's ports re-ignited supply concerns in the world's top steel producer.
Iron ore's rebound also followed news about a further erosion of a Vale SA VALE3.SA mine in major supplier Brazil, which sparked worry about the mine's stability and its impact on a nearby tailings dam. Dalian Commodity Exchange's most-traded May iron ore contract DCIOcv1 gained as much as 4% to 657 yuan ($94.67) a tonne, recouping Monday's loss. Futures on the Singapore Exchange rose as much as 2.3%.
The steelmaking raw material was among the big losers on Monday when panic over the spread of the coronavirus outside China and plunging oil prices gripped financial markets.
Iron ore imports stocked at China's ports dropped to 126.25 million tonnes, as of March 6, down 3.4% this year, based on data from SteelHome consultancy. SH-TOT-IRONINV
"Inventory is still at a low level (and) it has strong support for the price of iron ore," analysts at Sino-Steel Futures Co Ltd in Beijing said in a note.
The drop in port stockpiles mainly reflects steady demand, analysts said, as restocking by steel mills continued and business activities pick up steam in China after being disrupted by the epidemic.
"As construction restarts ramp up, we are likely going to see more than 80% (of) major infrastructure projects in full swing by end of March," Singapore-based steel and iron ore data analytics company Tivlon Technologies wrote in a note.
FUNDAMENTALS
* Vale said it was monitoring further erosion in the embankment of its Gongo Soco mine over concern about its impact on the nearby Sul Superior mining waste dam.
* A Vale tailings dam collapsed in early 2019, killing scores of people and prompting shutdowns of other Vale facilities for safety checks, which reduced iron ore supply and pushed prices to five-year peaks.
* Construction steel rebar on the Shanghai Futures Exchange SRBcv1 was up 1.9% by the midday break, while hot-rolled steel coil SHHCcv1 climbed 1.5% and stainless steel SHSScv1 gained 1.2%.
* Coking coal DJMcv1 rose 1.9% and coke DCJcv1 jumped 2%.
* Hunan Valin Steel Co Ltd 000932.SZ , the biggest steel producer in China's central province Hunan, said it plans a 21-day maintenance at a blast furnace this month, in an effort to ease pressure from high inventory. = 6.9399 yuan)