Iron ore prices rose on Wednesday’s trading, as a result of improved prospects for Chinese demand for steel following circulating news about Beijing’s intention to launch a new spending package to support the faltering real estate sector.

Bloomberg published a report stating that the Chinese government plans to provide low-cost financing worth at least one trillion yuan ($137 billion), with the aim of improving urban villages in the country and supporting low-cost housing.

The agency explained that expectations of an increase in the pace of iron ore storage before the Lunar New Year holiday next February helped improve investors’ expectations regarding the prospects for Chinese demand, to offset fears of a slowdown in real estate sector activity, which contributes to 40% of the demand for iron in the country.

Iron ore prices rose by 2.1% to $130.90 per ton on the Singapore Stock Exchange, exceeding $130 per ton for the first time in about 8 months.