Dalian iron ore futures hit their highest level in three weeks. Expectations of more policy support from China after the cabinet meeting pushed gains to the sixth session.
Politicians say they will continue to implement policies to encourage investment Wednesday, after growing economic woes with the real estate crisis in China, slow growth in retail sales and industrial production.
DCIOcv1 the most traded iron ore in January on the Dalian Commodity Exchange (DCE), finished day trading at 768.5 yuan ($105.15) up 4.34 percent, the highest level since July 26.
Also on the Dalian Commodity Exchange, coking coal DJMcv1 rose 1.45 percent and coke DCJcv1 1.41 percent.
The reference September contract SZZFU3 for the steelmaking component on the Singapore Exchange rose 4.9 percent to $105.75/mt, reaching its highest level since 1 August as of 0701 GMT.
Rebar SRBcv1 increased by 0.68 percent, wire rod SWRcv1 increased by 0.19 percent, stainless steel SHSScv1 increased by 0.1 percent, while hot rolled coil SHHCcv1 decreased by 0.13 percent on the Shanghai Futures Exchange.
Some construction steel producers in eastern China's Jiangsu province have started to cut production with the target of reducing production by about 30 percent compared to the average in the first half of 2023.
In addition, total steel inventories decreased by about 1 percent week on week to 16.6 million tons.