LAUNCESTON, Australia, Dec 4 Reuters The two main spot prices for iron ore diverged last week, with Singaporetraded contracts gaining but China39;s domestic futures posting a decline.

The two benchmarks generally move in tandem, but can decouple, especially when Beijing expresses displeasure over price gains for the key steel raw material, as has happened in recent weeks.

But the increase in the Singapore Exchange contracts show that Beijing may be pushing on a rope insofar as it can browbeat domestic investors for a while, but will struggle to contain international prices, especially if there are fundamental reasons supporting higher iron ore prices.

The frontmonth Singapore contract ended at 132.60 a metric ton on Dec. 1, up 1 for the week and the highest close in 18 months.

The frontmonth futures on the Dalian Commodity Exchange ended last week at 969 yuan 135.71 a metric ton, down 0.8 for the week, the first weekly loss after seven straight gains.

While modest, the decline in the Dalian contracts shows some nervousness among China39;s domestic traders in the face of several measures aimed at curbing iron ore39;s rally.

The exchange said on Nov. 30 that it will continue to strengthen its supervision of iron ore futures to maintain what it termed the safe and stable operation of the market.

This move came after China39;s state planner said on Nov. 24 it will boost supervision of iron ore at ports and guard against hoarding and speculation.

The National…