MANILA: Dalian and Singapore iron ore futures rose to two-week highs on Friday and were on track for their biggest weekly gains in six weeks, after top steel producer China announced more steps to support its COVID-ravaged economy.

The most-traded January iron ore on the Dalian Commodity Exchange climbed 3.7% to 720.50 yuan ($103.80) a tonne, its strongest since Aug 29.

The contract was up around 8% this week, clawing back last week’s losses. On the Singapore Exchange, the steelmaking ingredient’s benchmark October contract rose as much as 2.1% to $102.15 a tonne.

Iron ore rebounded amid China’s intensified support for an ailing property market and “an aggressive push to boost infrastructure spending as Beijing looks to support growth in the face of COVID-19 lockdowns,” ANZ commodity strategists said in a note. After policymakers signalled a renewed sense of urgency early this week to prop up the flagging economy, China’s cabinet on Thursday announced more steps to spur investment, such as in new infrastructure projects. In the spot market, increased demand pushed the benchmark 62%-grade iron ore bound for China higher by more than 3% this week to $100.50 a tonne, as of Thursday, SteelHome consultancy data showed. “The resumption of production in some steel mills has led to a continuous recovery in the average daily production of molten iron,” Sinosteel Futures analysts said in a note. “The short-term demand remains at a moderately high level, but the room for increased demand is limited.”

Also aiding sentiment, a slower-than-expected August inflation in China provides room for further central bank policy easing, analysts said. Rebar on the Shanghai Futures Exchange rose 1.4%, while hot-rolled coil gained 1% and stainless steel advanced 2.6%. Other steelmaking inputs also rose, with Dalian coking coal and coke up 1.3% and 1.5%, respectively.