MARKET OVERVIEW - Iron Ore Rises on Stock Increase Ahead of Holiday in Dalian, SGX Tests $100/Ton Again

In Dalian, iron ore futures rose for the second consecutive session, supported by pre-holiday stock replenishment among steel producers in China, although new environmental restrictions in the northern regions limited gains. The May iron ore contract on the Dalian Commodity Exchange (DCE) rose 0.19% to 774.5 yuan per ton (106.12 dollars) at 05:42 AM GMT. The January iron ore benchmark on the Singapore Exchange fell to 99.9 dollars per ton early in the session but traded at 100.7 dollars per ton, down 0.58% at 05:45 AM GMT. An analyst stated, “Winter stockpiling of iron ore is still ongoing among steel producers, thus we believe that ore prices will find some support in the near term, and stockpiling at ports will likely continue until the end of January.” The analyst also indicated, “We set the support levels at 760 yuan per ton and 770 yuan per ton, while the resistance level is established at 810 yuan per ton.” Chinese steel producers typically accumulate stockpiles to meet production needs during and after the holiday period ahead of the Chinese New Year, which begins on January 28. Additionally, several cities in northern China, including the steel production hub Handan, declared emergency responses due to air pollution forecasts starting yesterday. Coking coal and coke on the DCE fell by 1.81% and 0.84%, respectively. On the Shanghai Futures Exchange, rebar rose by 0.24%, hot-rolled coil by 0.09%, and stainless steel by 0.81%, while wire rod lost 0.31%.