Iron ore achieved its largest weekly rise in 6 months amid gradually increasing optimism about the chances of economic recovery in China, which is the largest crude consuming country.

Chinese Premier Li Qiang downplayed the seriousness of the crises afflicting his country’s economy in a speech he delivered before the China Development Forum yesterday, Sunday, adding that there is still great room for more policy support. He explained that the steps taken to reduce risks in the real estate sector and local government debts showed positive development.

Iron ore prices rose more than 8% at the end of last week, after falling below $100 per ton to their lowest level since May last Monday, affected by the ongoing real estate crisis in the country, which weakened the pace of steel consumption.

For its part, the banking group “Australia & New Zealand Group Holdings” (ANZ Group Holdings) believes that prices have already reached their lowest levels, as they have fallen to less than the wholesale cost locally in China. This view is consistent with a previous assessment issued by the Commonwealth Bank of Australia, in which it explained that cost support will now become an important consideration for the market.

But despite this rise, iron ore remains one of the worst performing commodities this year, recording a loss of more than 20%, and its stocks have accumulated in Chinese ports.