Iron ore prices jumped during Tuesday’s trading, as China intends to take several expanded monetary easing measures to stimulate the economy and the real estate sector, which will revive demand for steel in the world’s second-largest economy.

The most active iron ore futures prices on the Singapore Exchange rose by 4.74% to $93.70 per tonne at 08:46 am Mecca time.

This came after the governor of the Chinese central bank said in a press conference today that the bank will reduce the required reserve ratio for banks, interest rates on lending, open market operations for 7 days, and existing mortgage loans, in addition to reducing the percentage of down payments for the purchase of homes of all types.

Iron ore was among the worst performing major commodities this year due to the slowdown in the Chinese economy, and weak demand for steel from the real estate sector there amid its prolonged crisis.

Meanwhile, major low-cost iron ore producers such as Australia and Brazil have been ramping up production, creating a surplus in the market, Bloomberg reported.

The rebound in iron ore prices could continue for some time as investor confidence improves, Han Jing, a market analyst at SDIC Essence Futures, said in a comment on the Chinese measures.

However, the actual impact of China’s upcoming measures on iron ore supply and demand dynamics remains uncertain.