Market Outlook: Iron Ore Approaches $100/Ton Amid Strong Demand and Hopes for Chinese Stimulus

Forex - Futures iron ore prices have returned above the key psychological level of $100 per ton today, buoyed by strong short-term demand and renewed hopes for more economic stimulus from China.

The benchmark December iron ore contract on the Singapore Exchange rose by 3.45% to $100.05 per ton at 06:45 GMT, rebounding after a decline of more than 5% last week.

The January iron ore contract on the Dalian Commodity Exchange (DCE) closed morning trading up 2.54% at 766 yuan per ton ($105.87).

Analysts noted that the strong short-term demand for the main raw material used in steel production is supporting prices.

According to data from consulting firm Mysteel, the average daily hot metal production among surveyed steelmakers reached 2.36 million tons as of November 15, marking a weekly increase of 0.8% and the highest level since early August.

According to a report from state media, Shanghai announced today that it will reduce certain taxes on real estate transactions as a move to support the local housing market, effective from December 1.

Analysts observed that the likelihood of additional stimulus measures from Beijing remains high.

Coking coal and coke prices on the DCE rose by 1.02% and 1.2%, respectively.

Steel indicators on the Shanghai Futures Exchange showed an upward trend, with rebar up 0.4%, hot-rolled coil up 0.69%, wire rod up 1.12%, and stainless steel up 0.19%.