SINGAPORE- Iron ore futures prices extended gains to a second straight session on Friday and were headed for a weekly rise, as the prospect of fresh Chinese stimulus and a recovery in the top consumer’s steel demand lifted market sentiment.

The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.79 percent higher at 701.5 yuan ($98.70) a metric ton.

The contract has gained 2.86 percent so far this week.

The benchmark October iron ore on the Singapore Exchange, however, was 0.27 percent lower at $94.5 a ton.

China is poised to cut interest rates on more than $5 trillion of outstanding mortgages as early as this month, Bloomberg News reported on Thursday.

“We would not expect anywhere close to a 1:1 transmission into retail sales, given consumer confidence is near all-time lows and households’ willingness to save was near historic highs. Nonetheless, it is a significant move that should provide real tangible benefits to households and support consumption,” ING analysts said in a note commenting on the move.

Housing price data expected on Saturday will be scrutinized closely for signs of stabilization, ING said.