An employee works at an iron and steel factory in Changzhi, north China’s Shanxi province.  (Reuters Photo)

SINGAPORE- Iron ore futures prices edged higher on Friday but logged a weekly loss, as traders weighed prospects of fresh monetary stimulus from China against the top consumer’s muted economic recovery, while firmer global supply also weighed on prices.

The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 0.15 percent  higher at 680 yuan ($96.43) a metric ton.

The contract declined 3.41 percent  for the week.

The benchmark October iron ore on the Singapore Exchange was 0.99 percent  lower at $91.75 a ton.

China unexpectedly left benchmark lending rates unchanged at the monthly fixing, confounding market expectations that were primed for a move after the US Federal Reserve delivered an outsized interest rate cut earlier this week.

However, market watchers widely believe Chinese policymakers will roll out further stimulus to prop up the ailing economy and help it meet its increasingly challenging 2024 growth target, following a string of August economic data that surprised to the downside.