MARKET WATCH: Iron Ore Hits One-Month Low Amidst Chinese Concerns and Fed Outlook

Forex - Futures iron ore prices have fallen to their lowest level in nearly a month, affected by reduced sentiment due to demand expectations in China and concerns over the Federal Reserve's outlook for interest rate cuts next year. The May iron ore contract at the Dalian Commodity Exchange (DCE) saw a low of 767.5 yuan/ton at the beginning of the session, the lowest since November 22, and finished daytime trading down 1.08% at 778.5 yuan/ton ($106.66).

On the Singapore Exchange, the benchmark January iron ore contract dropped 0.43% to $102.25/ton at 07:00 GMT, having earlier seen a low of $100.9/ton, the lowest since November 25. An analyst commented, "We have long anticipated this correction, as the sentiment-driven bubble surrounding China's Central Economic Work Conference will eventually burst, especially since no concrete stimulus measures have been mentioned until March 2025."

Analysts noted that comments regarding fewer rate cuts from the Fed next year have also exerted pressure on a wide range of commodities. At the DCE, coking coal and coke fell by 3.65% and 0.9%, respectively. At the Shanghai Futures Exchange, rebar fell by 1.5%, hot-rolled coil by 1.55%, and stainless steel by 0.92%, while film rose by 0.14%.