The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) was up 2.36% at 801 yuan ($111.42) a metric ton.
The benchmark September iron ore on the Singapore Exchange was trading 1.06% higher at $104.6 a ton, as of 0708 GMT.
Steel mills in Tangshan have been ordered to stop operations from August 25 to ensure clean air in northern China ahead of the September 3 military parade commemorating the end of World War Two.
This could remove excess steel from the market and help push steel prices higher, said analysts at ANZ, adding that this would ultimately support steel mill margins and iron ore demand.
The total volume of iron ore shipments from top producers Australia and Brazil fell 1.5% week-on-week, according to data from Chinese consultancy Mysteel.
Broadly, China’s producer price index (PPI) fell 3.6% year-on-year in July, more than expected due to extreme weather and global trade uncertainties.
