Dalian iron ore extends gains on fresh China property support measures
Recasts paragraph 1 and updates closing prices
BEIJING, Aug 22 (Reuters) -Dalian iron ore futures extended their climb on Thursday, aided by top consumer China's support for its property sector along with rising margins among steelmakers, although caution from the remaining fragile fundamentals capped gains.
The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) DCIOcv1 pared early gains to end daytime trade 0.41% higher at 730 yuan ($102.33) a metric ton, after climbing to as high as 747 yuan a ton earlier in the session.
The contract is set to rise for a fourth consecutive session, and had rallied more than 4% on Wednesday.
The benchmark September iron ore SZZFU4 on the Singapore Exchange, however, pulled back earlier gains to fall 1.12% to $97.2 a ton, as of 0836 GMT, amid a stronger U.S. dollar =USD.
It touched an intraday high at $99.9 a ton earlier the session.
Commercial banks have approved 5,392 property projects under the "whitelist" programme that aimed at injecting liquidity into China's crisis-hit sector, with a financing amount totaling nearly 1.4 trillion yuan, an official told a press conference on Wednesday.
That has boosted market sentiment, together with the improved profitability among steelmakers, said analysts.
However, some analysts remained cautious on the sustainability of the price rebound.
"It's normal to see a round of upward correction after a flurry of steep and smooth falls. But this does not necessarily mean that the conflict surrounding fundamentals of the ferrous market has been resolved," said Jiang Mengtian, a Shanghai-based analyst at consultancy Horizon Insights.
"If there is no obvious improvement in demand, prices are likely to hit a new low in the reminder of the year."
Other steelmaking ingredients on the DCE were mixed, with coking coal DJMcv1 dipping 0.78% while coke DCJcv1 edged up 0.24%.
Most steel benchmarks on the Shanghai Futures Exchange surrendered gains in the morning to close day trade with losses.
Rebar SRBcv1 shed 0.69%, hot-rolled coil SHHCcv1 fell 0.55%, while wire rod SWRcv1 lost 1.64% and stainless steel SHSScv1 dropped 0.36%.
($1 = 7.1340 Chinese yuan)
Reporting by Amy Lv and Mei Mei Chu; Editing by Varun H K
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