BEIJING, Dec 10 (Reuters) - Benchmark iron ore futures in China...

BEIJING, Dec 10 (Reuters) - Benchmark iron ore futures in China surged more than 5% to a contract high on Thursday, as speculative buying was fuelled by expectations of continued strong demand for the steelmaking ingredient as the economy recovers.

The most actively traded iron ore futures on the Dalian Commodity Exchange DCIOcv1 , for May delivery, soared as much as 5.4% to 959 yuan ($146.56) a tonne. The contract was up 4.6% by 0330 GMT.

"We believe benchmarks were over-inflated to begin with, given that large volumes of 'hot money' have filtered through into iron ore as a speculative play on future economic growth," said Atilla Widnell, managing director of Navigate Commodities.

China's Dalian bourse said it would adjust speculative margin requirements for May iron ore futures and further limit non-futures members' single-day open positions starting next week.

Prices of spot 62% iron ore for delivery to China SH-CCN-RINOR62 , compiled by SteelHome consultancy, was unchanged at $146.5 per tonne on Wednesday from the previous session.

Meanwhile, steel rebar on the Shanghai Futures Exchange SRBcv1 jumped 2.7% to 4,051 yuan per tonne.

Hot-rolled coil SHHCK1 rose more than 3% after top steel producer Baoshan Iron & Steel's raised prices for its January delivery.

FUNDAMENTALS

• Dalian coking coal futures DJMF1 , for January delivery, gained 1.4% to 1,606 yuan a tonne.
• Coke futures DCJcv1 increased 1.8% to 2,628 yuan per tonne.
• Shanghai stainless steel futures SHSScv1 , for February delivery, dipped 0.1% to 13,455 yuan a tonne.
• Mining giant Rio Tinto Ltd (RIO) should pay restitution to Indigenous Australians affected by its destruction of two ancient rock shelters to expand an iron ore mine, an inquiry panel said on Wednesday.

  ($1 = 6.5449 Chinese yuan)