MANILA: Iron ore futures rose on Friday as continued optimism about an economic recovery in top steel producer China lifted demand sentiment, although they still headed for weekly losses due to a slump in prices early in the week.

The most-traded May iron ore on China’s Dalian Commodity Exchange rose 1.1% to 859.5 yuan ($126.79) a tonne as of 0230 GMT. For the week, the most-traded DCE contract was down about 1.2%, largely due to an early-week slump in prices after China’s state planner issued its third warning this month about excessive market speculation. The DCE will be closed from Jan. 21-27 for the Lunar New Year holidays. Trading will resume on Jan. 30. On the Singapore Exchange, the benchmark February iron ore was up 1.0% at $124.95 a tonne. Sentiment is riding high as optimism for stronger Chinese demand continues to rise. BHP CEO Mike Henry said China’s pro-growth policies, including those in the property sector, and easing COVID-19 curbs could support progressive improvement in the second half of the year, ANZ Research said in a note. China said the worst was over in its battle against COVID-19 ahead of what is expected to be the busiest day of travel in years on Friday, a mass movement of people that has fed fears of a further surge in infections.

Meanwhile, India’s eastern state of Odisha on Thursday approved ArcelorMittal Nippon Steel India’s $4.68 billion steel plant project, a government statement said. Most Asian equity markets edged higher on Friday, while the US dollar hung near its weakest levels since May, with investors fretting about the risks of a global recession as the Federal Reserve presses on with interest rate hikes.

The most-active rebar contract on the Shanghai Futures Exchange rose 0.1%, stainless steel gained 0.6%, meanwhile hot-rolled coil inched 0.1% lower, and wire rod edged down 0.3%.