Iron ore futures prices were rangebound on Friday but were heading for a second weekly gain on the back of lingering hopes of growing demand in top consumer China thanks to a flurry of property stimulus.

The most-traded September iron ore contract on China's Dalian Commodity Exchange (DCE) ended daytime trade 0.44% lower at 908 yuan ($125.33) a metric ton, posting an increase of 2.6% week-on-week.

The benchmark June iron ore on the Singapore Exchange was 1% higher at $120.75 a ton, as of 0738 GMT, a rise of 2.9% so far this week.

"The overall sentiment remained positive underpinned by the latest property stimulus policies," analysts at Huatai Futures said in a note.

China announced "historic" steps last Friday to stabilise its crisis-hit property sector, aiming to clear inventory and boost homebuyer demand, with several cities lowering downpayment and mortgage loan interest rates as a response.

Also, cash-strapped major property developer China Vanke said on Thursday it had received a 20 billion yuan syndicated loan facility.

Prices of the key steelmaking ingredient felt downward pressure in the prior day and were moving within a tight range on Friday as investors and traders were reassessing the near-term demand prospects after the latest hot metal output missed expectations while portside stocks continued to pile up.

Average daily hot metal output among steelmaker surveyed halted a seven-week increase to hover at 2.37 million tons as of May 24, while portside ore stocks rose by 0.3% on the week to around 148.55 million tons, data from consultancy Mysteel showed.

Other steelmaking ingredients on the DCE recorded further gains, with coking coal and coke up 1% and 1.39%, respectively.

Steel benchmarks on the Shanghai Futures Exchange were mixed. Rebar added 0.19%, hot-rolled coil rose 0.1%, wire rod slid 0.74% and stainless steel was little moved. ($1 = 7.2451 Chinese yuan)

(Reporting by Amy Lv and Emily Chow; Editing by Mrigank Dhaniwala)