HANOI: Iron ore futures in China climbed to near a one-week high on Thursday, on hope of better demand from the property market as China signalled some support to the struggling sector.

The most-traded May iron ore on China’s Dalian Commodity Exchange (DCE) advanced 1.7% to 957 yuan ($133.02) per metric ton at the midday break. Earlier in the session, it hit 964.50 yuan, the highest since Feb. 2.

The most-active March iron ore contract on the Singapore Exchange climbed 2% to $127.50 a ton, as of 0334 GMT. China aims to ramp up financing for home projects in the coming days as part of its support measures. Construction accounts for a majority of steel and iron ore demand.

However, banks’ reluctance to lend to the crisis-hit sector will remain a major obstacle for distressed developers who need fresh funding the most.

“A drop in iron ore inventories at major Chinese steel mills to the lowest in more than two years also stoke optimism that a restocking phase could boost prices once the week-long Lunar New Year holiday is over,” ANZ analysts said in a note.

Other steel-making ingredients on the DCE were mixed, with coking coal advancing 1.3% to 1,727 yuan a ton, while coke increased 1.1% to 2,344.50 yuan. Steel benchmarks on the Shanghai Futures Exchange (SHFE) were mixed.

Rebar edged up 0.6% at 3,851 yuan a ton, hot-rolled coil advanced 0.4% to 3,977 yuan, wire rod was flat at 4,058 yuan while stainless steel fell 0.2% to 13,550 yuan, the 11th straight session of decline. The Dalian exchange and the SHFE will be closed for a public holiday in China during Feb. 9-16.