MARKET OVERVIEW - Iron Ore Prices Decline Amid Concerns Over Disappointing Chinese Stimulus

Forex - Iron ore futures prices declined as investor sentiment weakened following the emphasis on qualitative improvements by state media in China, ahead of a meeting expected to set the tone for economic growth next year. The January iron ore contract at the Dalian Commodity Exchange (DCE) was trading at 804.5 yuan/ton ($110.64) with a decrease of 0.68% at 05:39 GMT. The benchmark January iron ore on the Singapore Exchange fell 1.03% to $104.25 per ton.

In a statement yesterday, the state-run newspaper People's Daily noted that China is not solely dependent on achieving specific GDP growth rates and that a growth rate below 5% is acceptable, stating there is no need to "worship speed."

China's Central Economic Work Conference is set to convene at an undisclosed date this month, where senior leaders will establish economic growth targets and plan the agenda for the coming year. Analysts indicated that investors and traders are anticipating additional stimulus from Beijing.

One analyst mentioned, "We believe that iron ore is currently overvalued, so a downward correction is inevitable." Analysts also noted that expectations for increased shipments, driven by recovering prices and some miners' motivation to meet their annual targets, have also exerted pressure on prices.

At the DCE, coking coal fell by 0.67%, while coke increased by 0.41%. At the Shanghai Futures Exchange, rebar and wire rod decreased by 0.66%, hot-rolled coil by 0.74%, and stainless steel by 1.22%.