MANILA: Dalian and Singapore iron ore futures rose on Tuesday, buoyed by news of further government support for Chinese property developers hit by a deepening financial crisis, but China’s worrying economic backdrop capped gains.

The most-traded iron ore, for delivery in January 2023, on China’s Dalian Commodity Exchange ended morning trade 0.3% higher at 724.50 yuan ($106.78) a tonne, after three sessions of losses.

On the Singapore Exchange, the front-month September contract rose 1.6% to $107.65 a tonne following two sessions of sell-off. Chinese regulators have instructed state-owned China Bond Insurance Co. Ltd. to provide guarantees for onshore bond issuance by a few private property developers, Reuters reported on Monday.

The additional state support comes as latest activity data pointed to an economic slowdown in China amid Beijing’s zero-COVID policy and the property downturn.

Rebar on the Shanghai Futures Exchange gained 0.3%. Data showing Chinese steel mills ramping up production this month also supported iron ore and other steelmaking ingredients. Dalian coking coal rose 1% and coke climbed 0.8%.

“Iron ore is supported by demand in the short term, (but) there is pressure in the medium term,” Zhongzhou Futures analysts said in a note.