Dalian iron ore advances on firmer China economic outlook; posts weekly rise

Dalian iron ore futures climbed to their highest in more than a month on Friday to endthe week higher, as a stronger economic outlook for top consumer China lifted market sentiment.

The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 1.14% higher at 797.5 yuan ($110.29) a metric ton.

The contract earlier rose as high as 806.5 yuan, strongest since Oct. 14, and added 2.90% this week.

The benchmark December iron ore SZZFZ4 on the Singapore Exchange was 0.94% higher at $104.7 a ton, a rise of 3.12% for the week, as of 0721 GMT.

Earlier in the session, it hit $104.55, highest since Nov. 8.

China’s factory activity likely expanded modestly for a second straight month in November, while its home prices are expected to stabilise in 2026 after slower falls this year and the next, two Reuters’ polls showed.

The polls added to a string of recent data suggesting the blitz of stimulus is finally trickling through and giving Chinese producers the much-needed boost.
Also supporting a firmer outlook for the world’s largest steel industry were expectations of China bracing for the economy’s vulnerabilities ahead of a second Donald Trump presidency.

“Chinese steelmakers will boost steel exports ahead of rising global trade tensions,” ANZ analysts said.

Chinese consultancy Mysteel said,”Steel mills in China have already started accumulating iron ore to ensure they have sufficient feeds for steel production during the winter.”

Other steelmaking ingredients on the DCE surrendered earlier gains, with coking coal DJMcv1 and coke DCJcv1 both down 0.24%.

Most steel benchmarks on the Shanghai Futures Exchange were stronger. Rebar SRBcv1 advanced almost 0.5%, hot-rolled coil SHHCcv1 rose about 0.6%, wire rod SWRcv1 added around 0.5%, while stainlesssteel SHSScv1 lost 0.46%.
Source: Reuters (Reporting by Gabrielle Ng; Editing by Sumana Nandy)