The price of iron ore rose to a seven-week high after Fortescue, the fourth-largest producer, said it expected full-year shipments to be at the lower end of the guideline after disruptions affected supplies from Western Australian mines.

Futures prices in Singapore rose nearly 5% before paring gains. The company said that exports decreased by 6% in the third quarter on an annual basis, due to the derailment of a train carrying iron ore and bad weather conditions. The export guideline remained unchanged from a range of 192 million tons to 197 million tons during the year to June.

Some optimism about China’s real estate market helped support sentiment. The official Economic Daily newspaper stated in a commentary that the real estate market is witnessing continuous demand and has a great opportunity for development, driven by improved living standards and urban expansion.

“Prices have risen because Fortescue’s guidance is surprisingly low,” said Cao Ying, senior metals analyst at SDIC Essence Futures. “It also appears that steel production and sales in China are going well.” “Fine lately.”