China steel futures climbed to a two-week high on Monday for the third day in a row, amid continued production restrictions to control pollution led by the top steel city of Tangshan.
Tangshan said it will expand summer production in the steel, coke and electricity sectors in September last week.
The most actively traded rebar contract for January delivery on the Shanghai Futures Exchange rose 4,299 yuan ($ 627) a tonne, the highest since August 27, and then closed 1.8 percent at 4,284 yuan.
Persistent production constraints in Tangshan are ahead of winter, when production at factories in northern China will be cut for the second consecutive year as the country grapples with smog.
In anticipation of further growth in production and prior to the peak season this month, some factories have increased their output.
Iron ore on the Dalian Commodity Exchange fell 0.7 percent to 497.50 yuan a tonne. Coking coal jumped 3 percent to 1,320 yuan a tonne, just after the session's peak of 1,321.50 yuan, to a two-week high. Coke, made from coking coal, added 0.3 percent to 2,409 yuan.
Steel futures climb to 2-week high in China
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