SINGAPORE (Reuters) - Iron ore futures prices hit a four-month high on the Dalian Commodity Exchange on Friday, ending with weekly gains, supported by a recovery in China's steel demand after the Lunar New Year holiday.

In addition, support measures for the property sector also boosted sentiment in the iron ore market.

The most-traded May iron ore contract on China's Dalian Commodity Exchange (DCE) ended trading 0.86% higher at 817 yuan ($112.11) a tonne, gaining 1.36% this week.

Prices earlier hit 825 yuan, the highest since Oct. 8.

Benchmark March iron ore on the Singapore Exchange was down 0.08% at $105.85 a tonne, marking a weekly increase of 0.23%.

Steel mills have resumed production after the Lunar New Year holiday, improving near-term iron ore demand and supporting prices, Chinese consultancy Hexun Futures said in a note. Steel output at blast furnaces in China rose this week after operations resumed following maintenance, according to Chinese consultancy Mysteel. The Shenzhen government made 10 new appointments at China Vanke in another move to tighten control over property development. Investors welcomed the Chinese developer’s top management shake-up last month, hoping government support would bring some stability to the struggling property sector. Still, a trade war poses the biggest challenge to the iron ore and steel market, ANZ analysts said in a note. U.S. President Donald Trump imposed 10% tariffs on a range of goods on Tuesday, prompting Beijing to impose retaliatory levies including a 15% levy on U.S. coal, a key ingredient in steelmaking.

Source: Notícias Agrícolas