MANILA: Iron ore futures climbed more than 4% on Friday, solidifying their weekly gains initially driven by earlier speculations that top steel producer China would ease its strict COVID-19 rules, and further fuelled by Beijing’s fresh pro-growth rhetoric.

The most-traded January iron ore on China’s Dalian Commodity Exchange ended morning trade 4.2% higher at 658 yuan ($90.62) a tonne, on track for a weekly rise - its first in four weeks - of 4%.

Dalian iron ore suffered its steepest monthly fall in 22 months in October due mainly to a gloomy outlook for Chinese demand for the steelmaking ingredient.

On the Singapore Exchange, benchmark December iron ore was up 4.2% at $85.15 a tonne, as of 0505 GMT. The market reversal this week comes despite China’s National Health Commission saying on Wednesday the nation should unwaveringly stick to the zero-COVID policy, and authorities earlier denying knowledge of a rumoured committee being formed supposedly to assess border reopening in March. Also, this week Chinese regulators declared that economic development remained a priority, seeking to allay foreign investors’ fears that ideology could take precedence during President Xi Jinping’s third leadership term.

While markets have taken Xi’s third term as general secretary of the ruling Communist Party and tight control of the new Politburo Standing Committee negatively, some analysts are looking at a positive angle.

“His message at the end of the National Congress was unquestionably pro-growth over the medium to long-run,” said Elliot Clarke, a senior economist at Westpac.

Iron ore’s rebound continues to hinge on China’s economic recovery, analysts said. Steel futures and other Dalian steelmaking inputs also extended their rally, with coking coal and coke up 4.3% and 3.1%, respectively. On the Shanghai Futures Exchange, rebar and hot-rolled coil both climbed 1.8%, wire rod gained 1%, and stainless steel advanced 0.7%.