SINGAPORE, July 15 (Reuters) – Iron ore futures prices strengthened on Tuesday, with market sentiment buoyed by China's recent proposal of rules placing limitations on steelmaking capacity designed to rebalance supply and demand in the world's leading producer. The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) traded 1.35% higher at 788 yuan ($110.63) a metric ton, as of 0309 GMT. The benchmark November iron ore on the Singapore Exchange was 0.05% higher at $105.75 a ton. Higher steel prices have created headroom for steel markets to increase purchases of iron ore and other steel-making raw materials, said analysts from ANZ. China on Friday had unveiled a proposal for a more stringent steel capacity swap plan. Under the new plan, the addition of new steel

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