July 8 (Reuters) - Dalian iron ore prices jumped on Friday, underpinned by renewed hopes for additional infrastructure spending by China, but futures in Singapore slipped on demand worries due to COVID-19 lockdowns in the world top steel producer.
The most-traded iron ore, for September delivery, on China's Dalian Commodity Exchange DCIOcv1 rose as much as 4.2% to 782 yuan ($116.72) a tonne, its highest since July 1.
On the Singapore Exchange, however, the steelmaking ingredient's front-month August contract SZZFQ2 was down 0.7% at $112.80 a tonne, as of 0244 GMT, set to post its fourth weekly loss in five weeks.
In the spot market, iron ore prices were also set for weekly declines, with the benchmark 62%-grade material bound for China having been assessed by SteelHome consultancy at $114 a tonne on Thursday, down 3% from last week. SH-CCN-IRNOR62
China's Ministry of Finance was considering allowing local governments to sell 1.5 trillion yuan ($220 billion) of special bonds in the second half of this year to boost infrastructure funding aimed at supporting the struggling domestic economy, Bloomberg News reported.
Entering the Chinese New Year holiday, market trading is sluggish
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