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 US$98.45 a tonne in Singapore as of 2.26pm 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.

  - Bloomberg