Iron ore prices rose more than 3% during Wednesday’s trading, continuing their recovery for the third day in a row, supported by optimism that China will take further measures to support the real estate sector.

The most active iron ore futures prices on the Singapore Exchange rose by 3.2% to $98.45 per ton during today’s session, after jumping 3.5% at the end of trading on Tuesday.

The recovery in iron ore prices came after a report yesterday indicated that China is considering allowing local governments to issue special bonds to finance stagnant home purchases from real estate developers, according to Bloomberg.

Raw prices are down 30% since the beginning of this year due to weak homebuilding activity in China, a slowing economy, and a lack of major infrastructure projects.