Market Overview: Iron Ore Dips to One-Month Low Amid Concerns Over Chinese Demand and Fed's Cautious Outlook

Iron ore prices have fallen to their lowest level in nearly a month, pressured by concerns over demand outlook in China and the Federal Reserve's potential interest rate cuts.

At the Dalian Commodity Exchange (DCE), May iron ore futures saw a drop to 767.5 yuan/ton, the lowest since November 22, before trading at 771.5 yuan/ton ($105.70) at 05:58 AM UTC, down 1.97%.

The benchmark January iron ore on the Singapore Exchange declined to $101.3/ton, a decrease of 1.35% at 05:48 AM UTC. The contract had earlier touched a low of $100.9/ton, the lowest since November 25.

Analysts noted that the sentiment-driven bubble surrounding China's Central Economic Work Conference was expected to burst eventually, as no concrete stimulus measures had been indicated until March 2025.

Furthermore, analysts indicated that comments regarding fewer interest rate cuts from the Fed next year have also exerted pressure on broader commodities. According to the updated dot plot, central bank policymakers now expect only a 50 basis point cut in 2025 and 2026.

Coking coal and coke at DCE dropped 3.44% and 1.27%, respectively.

Most steel indicators on the Shanghai Futures Exchange declined. Rebar fell 1.74%, hot-rolled coil decreased by 1.61%, and stainless steel was down 1%, while wire rod gained 0.48%.