BEIJING: Iron ore strengthened on Wednesday as positive signals from top consumer China’s latest financial meeting provided a further boost to market sentiment, on top of the key steelmaking ingredient’s sound fundamentals.

The most-traded January iron ore on China’s Dalian Commodity Exchange (DCE) rose 1.9% to 914 yuan ($124.90) a metric ton, as of 0215 GMT, the highest since March 31. The benchmark December iron ore on the Singapore Exchange was 1.14% higher at $120.5 a ton, as of 0218 GMT.

China will set up a mechanism to resolve local debt risks and manage local government debt, state media said on Tuesday, citing a key twice-a-decade financial policy meeting held on Oct.30-31.

Beijing will also help with reasonable financing demands for all types of property enterprises and pursue policies that aim to meet housing demand.

“Lowering local debt is, to some extent, injecting liquidity into the downstream market, buoying sentiment and supporting demand for industrial metals,” said Pei Hao, a Shanghai-based analyst at brokerage firm FIS.