* Dalian iron ore on track for fifth straight weekly rise
* SGX iron ore edges higher, briefly trades above $130/tonne
* China may take measures to cool iron ore rally - state media (Updates prices, adds new analyst comment) By Enrico Dela Cruz March 10 (Reuters) - Iron ore futures edged higher on Friday, with the Dalian benchmark price on track for a fifth weekly gain on optimism around China's steel demand as the country enters its peak spring construction season. However, traders tempered their enthusiasm, taking into account regulatory risks. Chinese authorities may take measures to curb surging iron ore prices, the state-owned Shanghai Securities Journal said. The upbeat mood lifted construction steel rebar's benchmark price in China, the world's biggest steel producer, to its strongest since June. Iron ore's most traded May contract on China's Dalian Commodity Exchange rose as much as 2.6% to a contract-high of 932.50 yuan ($133.92) a tonne.
It surrendered some of its earlier gains to end daytime trading just 0.1% higher at 910 yuan a tonne, though it was still up 0.9% for the week.
"The May Dalian contract hit fresh highs despite recent
warnings from authorities that it would severely 'crack down on
illegal behaviours such as fabricating price increase
information, hoarding and price gouging' and also moves by the
exchange to limit speculative activity," Westpac analysts said
in a note.
On the Singapore Exchange, the steelmaking ingredient's
benchmark April contract was up 0.7% at $128.55 a
tonne, as of 0748 GMT, off a session-high $130.70.
Analysts said worries about regulatory intervention were
likely to continue curbing iron ore prices, though the outlook
for steel demand in China has improved.
Next week, the spotlight will be on China's activity data
releases for January and February, which are expected to show
the country rebounding after dropping its stringent zero-COVID
policy, analysts said.
Rebar on the Shanghai Futures Exchange rose 1.4%,
while hot-rolled coil and wire rod both
climbed 0.9%. Stainless steel dipped 0.5%.
On the Dalian exchange, coking coal was flat, while
coke rose 1.2%.
(Reporting by Enrico Dela Cruz in Manila; Editing by Rashmi
Aich and Sonia Cheema)
