* Steel futures hit highest since early August
* China Aug iron ore imports hit 19-month high
* Iron ore port stocks jump to 3-1/2-month high
* China cuts banks' reserve requirement ratios(Recasts with steel rally, adds closing prices and chart)
By Enrico Dela Cruz
MANILA, Sept 9 (Reuters) - Benchmark iron ore prices erasedearly losses on Monday, tracking a rally in steel futures,driven by China's move to boost liquidity to shore up itsslowing economy and hopes for more stimulus.
The most-traded iron ore on the Dalian Commodity Exchange, for delivery in January 2020, ended up 1.8% at 655.50yuan ($91.90) a tonne, after slumping as much as 3.6% earlier inthe session.
On the Singapore Exchange, the front-month October contractdropped as much as 1.1% to $85.04 a tonne in the morning butturned 3.6% higher in late trade.
China's central bank said on Friday it would cut the amountof cash that banks must hold as reserves for the third time thisyear, releasing 900 billion yuan in liquidity to shore up theflagging economy.
Meanwhile, China's exports unexpectedly fell in August asshipments to the United States slowed sharply, pointing tofurther weakness in the world's second-largest economy andunderlining a pressing need for more stimulus as the Sino-U.S.trade war escalates.
Iron ore futures traded weaker early in the session afterdata showed China's imports of the steelmaking raw material rosein August to a 19-month high, the latest evidence of a continuedrebound from recent supply-side issues.
"The continued recovery from recent (supply) disruptions inAustralia and Brazil showed in stronger iron ore imports," anANZ Research note said.
China increased its iron ore imports in anticipation ofstockpiling ahead of China's National Day holidays in earlyOctober, it added.
But the price volatility reflected lingering concerns aboutdemand prospects.
"We remain cautious about iron ore prices going intoSeptember in light of the still-uncertain trade outlook, thegeneral malaise still plaguing large swathes of China'sindustrial economy and a steadily-improving supply picture, butwe don't see as drastic a fall as what we saw in August," saidEdward Meir, commodity consultant at brokerage INTL FCStone inLondon.
FUNDAMENTALS
* China's iron ore purchases last month totalled 94.85million tonnes, up 4.2% from 91.02 million tonnes in July,customs data showed, marking the highest level of imports sinceJanuary 2018.
* The inventory of imported iron ore at Chinese ports rosefor the eighth straight week to 126.7 million tonnes - athree-and-a-half-month high, as of Sept. 6, according to datacompiled by SteelHome consultancy.
* Benchmark spot 62% iron ore for delivery to China,<SH-CCN-IRNOR62> stood at $91 a tonne on Friday, according todata tracked by SteelHome consultancy.
* The most-active construction steel rebar contract on theShanghai Futures Exchange ended up 2.3% at 3,497 yuan atonne, its highest close since Aug. 5 this year. Hot rolled coil, the steel used in cars and home appliances, jumped2.8% to 3,528 yuan, its strongest finish since Aug. 1.
* Coking coal rose 1.1% at 1,343.50 yuan a tonneand coke gained 2.1% to 1,963.50 yuan.
* For the top stories metals and other news, clickor
($1 = 7.1328 yuan)
(Reporting by Enrico dela Cruz; Editing by Rashmi Aich)