Market Outlook: Iron Ore Recovers Ahead of Key Economic Meeting in China

Forex - Iron ore prices recovered from previous losses as investors awaited hints of policy easing from a key economic meeting in China. The January iron ore contract at the Dalian Commodity Exchange (DCE) ended morning trading up 0.68% at 817.0 yuan per ton ($112.49). The benchmark January iron ore on the Singapore Exchange rose 1.02% to $105.65 per ton at 06:30 GMT. Analysts noted that iron ore prices remained stable as traders weighed the impact of additional stimulus and easing monetary policy from China against other structural headwinds. Meanwhile, senior Chinese policymakers reflected that as they prepare for a second Donald Trump presidency, Beijing acknowledges the need for greater economic stimulus to combat Trump's threats of higher tariffs, considering allowing the yuan to weaken by 2025. According to analysts, this news has weakened sentiment in industrial metal markets, as a weak yuan could lead to capital outflows and a decline in the stock market. Analysts mentioned that markets are eagerly anticipating the annual Central Economic Work Conference expected to be held in Beijing this week, although detailed measures remain uncertain. At the DCE, coking coal and coke rose by 2.61% and 2.24%, respectively. At the Shanghai Futures Exchange, rebar rose 0.73%, hot-rolled coil increased by 0.3%, wire rod was up 0.55%, and stainless steel climbed 1.04%.