(Bloomberg) -- Iron ore rose to the highest level in almost four months on signs Chinese authorities will announce more support for the property sector at a key meeting next week.

Futures advanced in Singapore, extending a rally from a 45-month low at the end of October to almost 50%. The steelmaking ingredient has been buoyed by a steady stream of policies favorable to the real-estate industry in the world’s most-populous nation. 

Traders are banking on hopes that the property sector, good for 40% of China’s steel consumption, will get more support at the Central Economic Work Conference scheduled for next week, where policy makers will discuss goals for the new year. Authorities will aim to reverse the downward trend in the sector and resume normal operations, according to a person familiar with the matter.

There’s scope for iron ore to rally further due to positive sentiment on China’s shift away from Covid Zero and the government’s determination to support the property sector, Citigroup Inc. said in a note. The bank increased its three-month forecast to $120 a ton and said prices could climb toward $150 if China announces meaningful credit easing over the next three to six months or the re-opening accelerates. 

Replenishment of iron ore stockpiles remains slower than expected, Minmetals Futures said in a note. That should help keep prices robust in the short term, it said.

Iron ore rose 2% to $111.25 a ton in Singapore as of 5:24 p.m. local time, set for a sixth weekly advance. Futures in Dalian climbed 3.1% and steel rebar and hot-rolled coil advanced in Shanghai.

--With assistance from Annie Lee.

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