(Bloomberg) -- Iron ore rose for a third day — recovering more of its 9% plunge last week — on signs Chinese authorities will take more steps to try and revive the country’s moribund property market.
The steelmaking staple climbed as much as 3.5% in Singapore following a report late on Tuesday that Beijing is considering allowing local governments to buy unsold homes by issuing so-called special bonds. The potential move comes after a series of rescue packages failed to prop up the real estate market, which is a major source of demand for iron ore.
The commodity has tumbled 30% this year on the lack of housing construction, as well as China’s economic slowdown and a paucity of major infrastructure projects. The head of China’s biggest steelmaker warned last week that the industry was facing severe conditions that he likened to a “harsh winter.”
Iron ore futures rose 3.2% to $98.45 a ton in Singapore as of 2:26 p.m. local time, taking their gain this week to about 7%. The bulk commodity climbed 3.8% in Dalian, while steel contracts also advanced in Shanghai.
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