MARKET OUTLOOK - Iron Ore Rises in Dalian, Preparing for Weekly Gains Amid China's Strengthening Economic Outlook

Forex - Iron ore futures in Dalian climbed to their highest level in over a month, with a stronger economic outlook for China boosting market sentiment and preparing for weekly gains. The January iron ore contract at the Dalian Commodity Exchange (DCE) closed morning trading at 801.5 yuan/ton ($110.80), up 1.65%. The contract rose to as high as 806.5 yuan/ton in early trading, reaching its strongest level since October 14, and has gained 3.42% this week so far.

The benchmark December iron ore on the Singapore Exchange increased by 1.52% to $105.3/ton, marking a 3.12% rise for the week to date. Early in the session, it reached a peak of $104.55/ton, the highest level since November 8.

China's factory activity modestly expanded for the second consecutive month in November, while housing prices are expected to stabilize in 2026 after a slower decline this year and next. A series of new data indicated that stimulus measures are finally beginning to take effect, providing much-needed support to Chinese manufacturers.

Another factor supporting a stronger outlook for China is the expectation that the economy will be prepared for vulnerabilities ahead of a second Donald Trump presidency. Analysts stated, “Chinese steel producers will ramp up steel exports ahead of increasing global trade tensions.”

Coking coal and coke gained 0.32% and 0.45%, respectively, on the DCE. Steel indicators at the Shanghai Futures Exchange also saw increases, with rebar and hot-rolled coil rising by 1.15%, wire rod by 0.7%, and stainless steel by 0.2%.