Dalian iron ore futures rose for the fourth straight session and recorded their best day in two months on Friday, driven by optimistic news from China’s state banks.

The most-traded May iron ore on China’s Dalian Commodity Exchange ended 3% higher at 973 yuan ($136.16) per metric ton, racking up weekly gains of 3.2%.

On the Singapore Exchange, the benchmark January iron ore was up 1.1% at $137.5 a metric ton and gained 2.7% for the week.

Five of China’s largest state banks, including the Agricultural Bank of China 601288.SS and China Construction Bank 601939.SS, have cut interest rates on some deposits, according to their websites.

 “China’s industrial metals have reacted positively to this news as the country aims to reignite consumer spending and stimulate credit growth and borrowing,” said Atilla Widnell, managing director at Navigate Commodities.

 “With SGX 62% Iron Ore futures breaking out of resistance at approximately $136 a metric ton, the market is poised to aim for $145-$158 a ton in the coming quarter.”

This projection is fuelled by an increase in output from Chinese blast furnaces as they work to replenish internal iron ore stocks. It also accounts for the need to compensate for stock losses expected during the seasonal first-quarter mine maintenance programs, Widnell added.

China’s steel demand in 2023 will decline by 3.3% from 2022 and contract a further 1.7% in 2024, according to a state research forecast, weighed down by a significant drop in construction activity.

Steel benchmarks on the Shanghai Futures Exchange were mixed. The most-active rebar contract SRBcv1 strengthened 1.3%, hot-rolled coil SHHCcv1 grew 1.2%, and stainless steel SHSScv1 gained 0.6%. Meanwhile, wire rod SWRcv1 decreased by 1%.

Other steelmaking ingredients such as Dalian coking coal DJMcv1 and coke DCJcv1 inched up 2.9% and 3.7%, respectively.

The Singapore markets will be closed on Monday for the Christmas break and trading will resume on Dec. 26.