Market Outlook: Iron Ore in Dalian Declines as Optimism for Stimulus Wanes

Forex - Iron ore futures prices in Dalian declined today, but investors gauged optimism regarding a policy shift in Beijing against softer trade data from China, keeping prices close to two-month highs.

The January iron ore contract on the Dalian Commodity Exchange (DCE) traded at 811.0 yuan/ton ($111.94) with a decrease of 1.46% at 06:05 GMT. Earlier in the session, the contract reached a peak of 818.0 yuan/ton, marking its strongest level since October 8.

The benchmark January iron ore on the Singapore Exchange fell by 0.27% to $105.1/ton. Analysts noted that the market maintained optimism over recent support aimed at boosting the real estate sector and growth, extending iron ore gains towards $106/ton.

Chinese leaders signaled readiness to implement any necessary stimulus to counter the expected effects of U.S. trade tariffs on next year's economic growth. Analysts mentioned that the market is anticipating this week's Central Economic Work Conference, where Beijing will set policy priorities, including the annual growth target for next year.

On the DCE, coking coal fell by 1.43%, while coke rose by 0.29%. Most steel indicators on the Shanghai Futures Exchange recorded declines, with rebar down 0.23%, hot-rolled coils down 0.17%, and stainless steel down 0.77%, while wire rod increased by 0.9%.