Iron ore surged to its highest intraday price since February, with demand optimism growing as more details emerge about China’s latest economic stimulus drive.

The steel-making staple rose as much as 2.3% in Singapore, after gaining 2% on Monday. It was boosted by a front-page editorial in state-owned media Tuesday that said funds from the 1 trillion yuan ($140 billion) debt issuance announced by Beijing last month should be disbursed into construction projects and allocated in a timely manner. 

In a further sign that Beijing is determined to breathe life into a sector that’s endured more than a year-long slump, Bloomberg reported 50 Chinese real estate developers may be eligible for financing. That lifted the share prices of some major companies.

Construction-steel demand is stabilizing, with sentiment for next year also improving, according to Tomas Gutierrez, an analyst at Kallanish Commodities Ltd.

Demand for iron ore is being driven by some mill procurement on an as-needed basis, Yongan Futures Ltd. said in a note. Still, the onset of colder weather may cause a seasonal demand drop for construction materials, it added.

Industrial action in Australia could also potentially buoy prices if it becomes more serious and leads to supply disruptions. Hundreds of train drivers at BHP Group Ltd.’s operations in the Pilbara will start a campaign this Friday with an indefinite ban on the use of mobile rostering apps, according to a union statement.

Iron ore was 2% higher to $133.65 a ton as of 10:50 a.m. in Singapore, putting it on track for its highest close since June 2022. Futures in Dalian climbed 1.8%, and steel contracts in Shanghai also advanced.