(Bloomberg) -- Iron ore climbed to the highest level in seven weeks as Fortescue Ltd., the fourth-biggest producer, said full-year shipments are likely to be at the lower end of guidance after disruptions hit supplies at mines in Western Australia.

Futures in Singapore rose more than 5% before paring gains. The company said exports were down 6% in its third quarter from a year earlier, due to an ore car derailment and weather woes. The guidance range was unchanged at 192 million to 197 million tons for shipments in the year to June.

Some optimism over China’s property market also buoyed sentiment. The real estate market is seeing persistent demand and has abundant room for development, driven by improving living standards and urbanization, the official Economic Daily said in a commentary. 

Prices increased because the guidance from Fortescue was “surprisingly low,” said Cao Ying, chief ferrous analyst at SDIC Essence Futures Co. “It also seems that production and sales of steel products in China are doing okay recently.”

More help for property owners emerged in Shenzhen in southern China. Thirteen developers agreed to allow homebuyers to cancel purchase agreements if they fail to sell their existing residences within 90 days.

The real estate sector is still mired in crisis, with home prices continuing to fall in March. The slump has yet to bottom, according to Goldman Sachs Group Inc., even as policymakers ramp up measures to revive demand. 

Even after their advance Wednesday, iron ore prices are still down 15% so far in 2024 as inventories of the material at China’s ports hold around their highest level in about two years. By contrast, an index of six base metals traded on the London Metal Exchange is up about 12% this year.

Singapore futures increased to $118.70 a ton before trading at $118.35 by 3:23 p.m. local time. Dalian prices ended up 4.6%, while Shanghai steel contracts were also higher.

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