MANILA: Iron ore futures climbed on Monday, with the Singapore benchmark rising back above $130 a tonne, buoyed by improved profitability of steel mills in top steel producer China, although regulatory concerns weighed on the market.

The most-traded May iron ore on China’s Dalian Commodity Exchange ended morning trade 0.3% higher at 927.50 yuan ($134.91) a tonne, holding firm after posting its fifth consecutive weekly gain on Friday. On the Singapore Exchange, iron ore’s benchmark April contract was up 2.2% at $131.65 a tonne, as of 0350 GMT, hitting its highest since Feb. 21.

The rapid rise in steel mills’ profits and output expansion of long-process steel mills have boosted iron ore demand, Sinosteel Futures analysts said in a note.

According to industry data and consultancy provider Mysteel’s latest survey of 247 Chinese steel mills, the overall blast furnace capacity utilisation rate edged up for the ninth straight week, rising another 0.89 percentage point on week to 88.03% over March 3-9.

Chinese steelmakers have resumed operations after regular maintenance works or ramped up production amid improving margins and brightening outlook for the domestic economy.

China reported unexpectedly strong credit growth for February, with money supply expanding at the fastest pace in nearly seven years, as Beijing looks to support a nascent economic recovery amid rising global risks.

Chinese regulators, however, may take steps to curb surging iron ore prices, the state-owned Shanghai Securities Journal said on Friday. China’s state planner, the National Development and Reform Commission, has suggested authorities should strengthen market supervision and crack down on misleading pricing information and hoarding.

Rebar on the Shanghai Futures Exchange rose 1%, hot-rolled coil climbed 0.9% and wire rod added 0.2%. Stainless steel dipped 0.8%. On the Dalian exchange, coking coal and coke gained 0.7% and 0.4%, respectively.