Dalian and Singapore iron ore futures pulled back on Tuesday from record peaks hit in the previous session, following another move by the Chinese market regulator to impose a trading limit.

China's Dalian Commodity Exchange has moved to limit non-futures company members' single-day position openings for iron ore futures to 2,000 lots from Tuesday's session.

The move followed strong speculative buying in recent days that had prompted a call by major Chinese steelmakers for a regulatory probe, and a Dec. 3 announcement of an initial trading limit for the most-active May iron ore contract.

The Dalian exchange has said it would "dynamically adjust the trading limit in accordance with market conditions".

Dalian iron ore for May delivery ended the morning session down 1.5% at 1,091.50 yuan ($166.65) a tonne, after hitting a contract high of 1,147 yuan on Monday.

Iron ore's January contract on the Singapore Exchange slumped 2.9% to $169.89 a tonne, after touching a record high of $176.20 a tonne in the previous session.

Prices for iron ore have more than doubled in 2020, putting the steelmaking raw material on track to be the top-performing major commodity globally for a second straight year as speculative money floods in and Chinese demand holds firm.

Taking the spotlight away from iron ore, Chinese steel futures extended gains to hit fresh contract highs on Tuesday, as inventories of finished products in the world's top steel producer continued to shrink.