By James Attwood and Nathan Gill
March 4 (Bloomberg) — Cap SA, Chile’s biggest steel and iron-ore producer, rose the most in a month on speculation Chinese stimulus spending will limit iron-ore price declines.

    
Cap gained 4.3 percent to 8,211 pesos, the steepest increase since Feb. 5. The stock dropped 11 percent last week.

    
China’s former statistics bureau head Li Deshui told reporters in Beijing that Premier Wen Jiabao will announce “a new stimulus package” in his annual address to the nation’s legislature tomorrow, adding to the government’s $585 billion spending plan.

    
“Three months ago the market expected the price of iron-ore would fall 30 percent,” Leonor Skewes, an analyst at Banco Bice, said by phone from Santiago today. “If there were a stimulus it is most likely that the fall in prices would be about 20 percent. This would be positive for Cap.”