The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.69% higher at 801.5 yuan ($110.13) a metric ton. The benchmark January iron ore on the Singapore Exchange, however, ticked down 0.07% to $103.25 a ton, as of 0335 GMT.
Iron ore prices have been supported above $100 a ton by Beijing’s Central Economic Work Conference, which is scheduled slightly earlier than usual for Dec. 11-12 and driving rising stimulus hopes, Westpac analysts said.
“Recent Chinese stimulus measures have revived demand for steel and thereby for iron ore, as property sales are showing some signs of improvement,” ANZ analysts said. Inventories of the steelmaking ingredient fell to their lowest since August last week, ANZ added. Still, official data on Monday showed China’s consumer inflation hit a five-month low in November and factory deflation persisted, suggesting Beijing’s recent efforts to shore up faltering economic demand are having only limited impact.
The world’s second-largest economy is bracing for likely fresh tariffs from a second Donald Trump presidency and still dealing with other headwinds, suggesting more policy stimulus will be needed to boost fragile growth.
