SINGAPORE (Reuters) - Iron ore futures prices closed higher for the fifth consecutive session on Tuesday, boosted by expectations of further stimulus after Beijing unveiled a $170 billion hydropower project to boost economic growth.

The most-traded September iron ore contract on China's Dalian Commodity Exchange closed up 2.49% at 823 yuan ($114.72) a ton.

Benchmark August iron ore on the Singapore Exchange rose 1.61% to $105.15 a ton.

"Iron ore futures extended recent gains amid prospects for further stimulus measures, with Beijing's announcement of the $170 billion hydropower project promising to provide a positive economic boost for steel," ANZ analysts said in a note.

The move also sparked optimism that the government may be returning to traditional fiscal stimulus strategies to boost economic growth, ANZ said, with the positive sentiment also supported by ongoing efforts to reduce excessive competition and overcapacity in the steel industry.

The Chinese government's ongoing efforts to curb "involutionary" competition among industrial companies have bolstered market optimism, said consultancy Mysteel.

This competition is characterized by overcapacity among manufacturers and price cuts to eliminate excess inventory, which has sparked price wars across various sectors in China.

Meanwhile, Chinese steelmakers are circumventing the tariffs by exporting semi-finished steel billets, which are not subject to the same trade restrictions as finished steel products in many countries. This strategy has contributed to the sharp increase in exports from the world's largest steel producer.

Source: Notícias Agrícolas