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Iron ore prices rose Monday, fueled by increased demand when Tangshan steel mills resumed production after China’s centennial.

Steel production at some producers has been limited due to the Communist Party’s centennial and environmental policies, dropping blast furnace utilization rates at 247 steel mills across China to 81.01% as of July 2 from the previous week.

As Tangshan has resumed production, near-term demand will return to pre-centennial levels with overall demand still weakened by steel-cutting policies.

The most-traded iron ore futures on the Dalian Commodity Exchange, for September delivery, rose as much as 5.6% to 1,226 yuan ($189.80) per tonne, the highest level since June 11. They closed up 5.5% at 1,225 yuan.

Steel supply is facing increasing pressure as some areas have stepped up plans to cut production, while some steel mills are facing losses.