MARKET OVERVIEW - Iron Ore Surges to Two-Week High in Dalian

Futures in iron ore on the Dalian Commodity Exchange jumped to their highest level in over two weeks, supported by strengthening global steel production and China's increased monetary stimulus. The January iron ore contract finished the morning session up 0.06% at 775.5 yuan/ton ($107.06). The contract rose to as high as 791.0 yuan in early trading, reaching the strongest level since November 8. The benchmark December iron ore on the Singapore Exchange increased by 0.72% to $101.3 per ton at 07:15 GMT. According to the World Steel Association, global crude steel production rose by 0.4% year-on-year to 151.2 million tons in October. In China, the world’s largest metal producer and consumer, crude steel production increased by 2.9% during the same period, reaching 81.9 million tons. Analysts noted that declining stocks of Chinese steel products, bolstered by strong exports, have driven iron ore prices above $100 per ton. Meanwhile, the People's Bank of China injected 900 billion yuan ($124.3 billion) into the banking system through one-year policy loans today. On the DCE, coking coal and coke fell by 2.11% and 1.06%, respectively. Steel indicators on the Shanghai Futures Exchange declined, with rebar and hot-rolled coil dropping by 0.5%, wire rod by 0.1%, and stainless steel by 0.06%.