Iron ore retreats from 4-week highs as China sticks to zero-COVID policy

July 29 (Reuters) - Iron ore futures pulled back on Friday as Beijing signalled that controlling COVID-19 outbreaks remains its priority, although the steelmaking ingredient was set for its steepest weekly rise since March after solid gains in recent days.

Iron ore's most-traded September contract on the Singapore Exchange fell as much as 5.4% to $112.30 a tonne, after touching its highest since June 30 at $119.90 in the previous session.

On China's Dalian Commodity Exchange, September iron ore was up 0.9% at 774.50 yuan ($114.80) a tonne, off Thursday's four-week peak of 798.50 yuan.

China is sticking to its "dynamic zero-COVID" policy, state media said after a high-level meeting of the ruling Communist Party on Thursday.

"It appears to us that any change in the zero-COVID policy will only happen when authorities are convinced that mutations are less virulent and vaccines/medicines are proven to be more effective. Both are unlikely to happen in the near term," ANZ analysts said in a note.

Iron ore and steel markets suffered losses in the second quarter as COVID-19 lockdowns in China dampened demand in the world's biggest steel producer and consumer.