Iron ore prices rose more than 7 percent in two days on news that China will raise funds to support the struggling housing sector.
China's State Council announced a new fund for 12 companies under pressure last week. 50 billion yuan ($7.4 billion) was obtained from the China Development Bank, and it was stated that this figure could reach up to 300 billion yuan.
Essence International analyst Steve Wong “is signaling that the government is looking to restore home buyers' confidence and re-boost home purchases.” made its assessment.
Futures in Singapore rose 4 percent to $107.95 a tonne today. Iron ore has fallen 35 percent since its peak in March.
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