China's iron ore futures extended gains on Tuesday on hopes of further government support for the coronavirus-hit domestic economy, and after Brazil reported a 17.5% month-on-month drop in February exports of the steelmaking raw material. The Dalian Commodity Exchange's most-traded iron ore contract ended up 0.9% at 644.50 yuan ($92.37) a tonne after rising as much as 4.2% earlier in the session.

Iron ore rebounded on Monday from a four-session sell-off as grim factory data reinforced expectations of more stimulus measures from Beijing, and as stockpiles at the country's ports fell further. "After China's manufacturing PMI fell to its lowest ever level, expectations that the Chinese government would step in with an aggressive stimulus package rose strongly," said Daniel Hynes, senior commodity strategist at ANZ in Sydney.

Top steel maker China recorded its sharpest contraction in factory activity in February in the wake of the coronavirus epidemic. An aggressive fiscal and monetary policy support from the government could fuel a recovery in domestic steel demand that has been weakened by a prolonged Lunar New Year break and restrictions to contain the epidemic.

Iron ore futures on the Singapore Exchange, however, wiped out earlier gains, down 0.8% at $85.37 a tonne in afternoon trade, as hopes dimmed for explicit measures from the Group of Seven nations to counter the economic impact of the coronavirus outbreak. The G-7 industrial powers were drafting a statement outlining a plan to soften the economic hit but which so far excludes direct calls for new government spending or coordinated central bank rate cuts, a G7 official said.

Major supplier Brazil's iron ore exports in February totalled 22.10 million tonnes, compared with 26.79 million tonnes the month before and 28.93 million tonnes a year ago. Iron ore imports stocked at China's ports have fallen 3% this year and 13% from a year ago, SteelHome consultancy data showed.

Benchmark 62% iron ore rebounded from a three-week low to settle at $88 a tonne on Monday, also based on SteelHome data. Construction steel rebar on the Shanghai Futures Exchange rose 0.7%, while hot-rolled coil gained 0.6% and stainless steel ticked up 0.2%.