(Bloomberg) -- Iron ore is on track for the second consecutive monthly advance amid signs that China’s economic recovery may be strengthening.

The September PMI data due Saturday are likely to show recent stimulus measures are starting to have an impact, according to Bloomberg Economics. The official manufacturing gauge is expected to signal expansion for the first time since March, supported by increased government investment, it said. 

Meanwhile, a firm analyzing the global economy using satellite data said China showed signs of a stronger recovery this month.

China, the world’s biggest buyer of raw materials, has pledged to boost growth and investors have been looking for material signs of a recovery in consumption. Still, the economy continues to be weighed down by woes in the property sector, which have hit demand for industrial metals. 

“The deepening crisis in China’s property markets is not boding well for bulks,” Australia & New Zealand Banking Group Ltd. said in a note Friday. “Despite many stimulatory measures, the sector is still grappling with debt and sluggish demand,” it said, adding iron ore prices may drop below $100 a ton by the end of the year.

Iron ore futures in Singapore advanced 2.3% to $120.75 a ton as of 11:19 a.m. local time, with prices on track to gain 5.7% this month. China’s markets are closed for the Golden Week holidays through the end of next week. 

Still, industrial metals are set to benefit from stabilizing growth in China in the coming quarter, ANZ said. While disappointing economic activity has capped the upside for prices, “demand from the new energy sector is a sweet spot.”

Most base metals were higher on the London Metal Exchange on Friday, with copper gaining 0.5% and nickel up 0.8%.

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