The spot price of iron ore bounced back above $US90 amid reports that China is moving to limit the fallout from the debt issues that have plagued its property market.
Chinese state-owned media published a series of articles detailing possible measures to manage the issues at Evergrande and other real estate developers. This coincided with reports that Evergrande has once again averted a default.
This boosted sentiment, with iron ore futures in Singapore rising more than 5 per cent, and the spot price jumped 4.1 per cent to $US92.57 a tonne.
Stocks of property developers in China were up sharply, while shares in BHP and Rio Tinto on Wall Street bounced. Australian-listed iron ore stocks posted solid gains yesterday.