Iron ore futures prices surged on Thursday to hit their highest in more than a week, as prospects of improved seasonal demand in China outweighed concerns over the top consumer’s economic recovery.

The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 3.97% higher at 707.0 yuan ($99.25) a metric ton.

The contract hit an intraday high of 709.0 yuan, its strongest level since Sept. 3.

The benchmark October iron ore on the Singapore Exchange was 1.95% higher at $94.55 a ton, as of 0732 GMT.

“While China’s economy continues to face headwinds, we see pockets of growth that should provide some support to commodity markets,” said ANZ analysts in a note.

Steel demand is expected to return to growth in 2025, as a rise in non-property sectors, such as machinery, shipbuilding and transport, is helping offset the sharp fall in demand from the property sector, ANZ said.

Chinese steelmakers have built up their inventory of imported iron ore recently to prepare for the upcoming Mid-Autumn Festival holiday over Sept. 15-17, as replenishment is expected to become less convenient during holidays, Chinese consultancy Mysteel said.

The restocking of inventories may lead to a rebound in iron ore demand in the short term, Chinese financial information site Hexun Futures said.

Analysts have differing opinions on the ‘Golden September’ peak period of the steel industry, with some believing the downward trend in demand and cost reduction is difficult to change, while others believe demand may recover, and the key lies in steel transactions and building materials demand, added Hexun Futures.

Other steelmaking ingredients on the DCE jumped, with coking coal and coke up 5.04% and 4.87%, respectively.

Steel benchmarks on the Shanghai Futures Exchange gained further ground. Hot-rolled coil climbed 3.44%, rebar gained about 3.1%, wire rod added 1.87%, and stainless steel advanced 1.75