* Iron ore under pressure on Friday after solid gains
* Dalian exchange reminds clients to trade rationally
By Enrico Dela Cruz
MANILA, Aug 7 (Reuters) - China's iron ore futures on Friday were set for their biggest weekly gain in more than two months, lifted by strong demand for the raw material as steel mills continued to ramp up output, with lingering concerns about supply adding support.
Both Chinese and Singapore benchmark contracts, however, were under pressure on Friday after solid gains, pulling back in the wake of fresh warnings from the Dalian Commodity Exchange against irrational market behaviour.
Iron ore for September delivery on China's Dalian exchange DCIOcv1 was down 0.9% at 897 yuan ($128.78) a tonne by 0311 GMT, but on track to post a weekly gain of more than 7%, its best performance since the third week of May.
The Singapore Exchange's most-active September contract fell 2.4% to $112.42 a tonne.
The Dalian exchange on Thursday reminded its clients to invest in iron ore rationally amid market uncertainties and recent price fluctuations, and planned to crack down on trading irregularities. iron ore has rallied more than 50% so far this year, while spot prices have soared to 12-month highs, as steel mills in China - which produces more than half of the world's steel products - ramped up purchases to rebuild stockpiles.
"As mills are operating on thin inventories both onsite and at ports, high consumption rates have forced them to buy rather than wait for price decreases," said Richard Lu, senior analyst at CRU consultancy in Beijing.
FUNDAMENTALS
* Construction steel rebar on the Shanghai Futures Exchange SRBcv1 was down 0.2%, but was heading for a weekly gain of 2% on hopes of robust demand during autumn in China beginning September.
* Hot-rolled coil SHHCcv1 , steel used in cars and home appliances, slipped 0.3%, while stainless steel SHSScv1 retreated 0.8% after recent successive gains.
* Dalian coking coal DJMcv1 gained 0.3% and Dalian coke DCJcv1 climbed 1.3%.