The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.06% higher at 801.5 yuan ($113.44) a metric ton, as of 0322 GMT.
The benchmark January iron ore on the Singapore Exchange was 0.1% higher at $104 a ton.
Chinese steel prices are expected to increase in December, driven by the improved macroeconomic environment, as well as the recovery in market fundamentals, said consultancy Mysteel’s chief analyst Wang Jianhua in his latest monthly outlook.
Iron ore concentrate prices in key steelmaking hub Tangshan are expected to remain stable in the near term, said market intelligence provider Shanghai Metals Markets (SMM).
Hot metal production, a gauge of iron ore demand, is on a downward trend, with weakening fundamentals putting pressure on ore prices, though market sentiment remains positive ahead of key policy meetings, SMM added.
Broadly, investors are awaiting signals on next year’s growth targets from the annual agenda-setting Central Economic Work Conference and the December Politburo meeting.
Due to recent stricter environmental inspections, pig iron production is expected to continue to decline this week, putting pressure on raw materials, said broker Galaxy Futures.
