MANILA: Iron ore prices in Asia rose on Wednesday, with the benchmark Dalian contract advancing for a fifth straight session, as markets expect robust restocking demand in China when COVID-19 restrictions are lifted. Traders pushed prices higher despite China’s Dalian Commodity Exchange raising trading limits and margin requirements for some of its futures products, including iron ore, ahead of the April 5 Tomb Sweeping Day holiday.

The changes to trading limits and margins will take effect from settlement on March 31. The most-traded Dalian iron ore for September delivery ended the morning trade 1.7% higher at 884 yuan ($139.03) a tonne, after initially touching 887.50 yuan, the highest since Aug. 9. On the Singapore Exchange, the most-active May iron ore contract was up 1.7% at $157.20 a tonne, as of 0448 GMT. Optimism over prospects of additional policy support to shore up the world’s second-largest economy and biggest steel producer, and signs of a resilient Chinese industrial sector, have provided strong support to iron ore.

“Traders are buying the steelmaking ingredient following data (showing) that Chinese industrial companies enjoyed strong profit growth in Jan-Feb 2022,” SP Angel analyst John Meyer said, referring to data released earlier this week. Construction steel rebar on the Shanghai Futures Exchange slipped 0.4%, while hot-rolled coil shed 0.9%. The Shanghai exchange said on Tuesday it would also raise trading limits and margin requirements for some futures products, including steel. Stainless steel rose 0.7%. Dalian coking coal gained 0.2% and coke climbed 1.8%.