* Spot iron ore headed for biggest weekly gain since Nov
* Upbeat sentiment after firm Chinese data this week
By Manolo Serapio Jr
MANILA, March 17 Chinese steel and iron ore
futures dropped on Friday after recent sharp gains that helped
both commodities post their biggest weekly increase in two
Shanghai rebar scaled a three-year high this week on hopes
of stronger infrastructure spending and property sales in top
steel consumer China, lifting spot prices of raw material iron
ore back above $90 a tonne for the first time in one-and-a-half
The most-active rebar on the Shanghai Futures Exchange
closed down 1.3 percent at 3,575 yuan ($518) a tonne.
But the construction steel product still rose 5 percent for the
week, having touched 3,692 yuan on Wednesday, its strongest
since February 2014.
Iron ore on the Dalian Commodity Exchange dropped
0.8 percent to end at 715.50 yuan per tonne. It touched a
three-week peak of 735 yuan in the previous session, and posted
a weekly gain of 8.8 percent.
The weekly gains in both rebar and iron ore were at their
biggest since mid-January.
The wild swings in futures, which help sway spot prices, are
putting investors on edge even as fundamentals are largely
supportive, traders said.
"The market's become very risky," said a trader in Beijing.
But ANZ analysts said optimism on the outlook for iron ore
demand "continued to pick up following the recent release of
better-than-expected economic data in China."
China's fixed-asset investment grew 8.9 percent in January
and February from the same period last year, largely due to
strong property and infrastructure construction, outpacing the
8.1 percent pace for all of 2016.
Iron ore for delivery to China's Qingdao port .IO62-CNO=MB
rose 1.8 percent to $92.61 a tonne on Thursday, according to
Metal Bulletin. The spot benchmark has climbed 6.8 percent so
far this week, on track for its largest such gain since late
($1 = 6.9031 Chinese yuan)
(Reporting by Manolo Serapio Jr.; Editing by Sherry