SINGAPORE: Dalian iron ore futures were set for a fifth consecutive weekly gain as prices on Friday recouped some of the previous session’s losses amid signs of a recovery in China steel demand.

The most-traded January iron ore on China’s Dalian Commodity Exchange rose 0.7% to 963.5 yuan ($132.96) per metric ton by 0235 GMT, gaining 1.3% so far in the week.

On the Singapore Exchange, the benchmark December iron ore was down 1% at $130.96 a ton. However, the contract has risen 3.2% so far in the week, heading for its fourth straight weekly gain.

“Recent data from the China Iron and Steel Association (CISA) shows that... crude steel production at major mills increased by 2.4% from late October to 1.97mt/d in early November, as some mills ramped up production this month amid improving profit margins and strengthening steel prices,” analysts from ING said in a note.

China’s new home prices fell for a fourth month in October, official data showed on Thursday, as government support measures did little to lift the gloom hanging over the country’s consumers and its debt-laden property sector.

State-backed Dalian Commodity Exchange on Wednesday set a limit on daily trading volumes for iron ore futures at no more than 500 lots on contracts for January to May 2024 delivery.