Dalian iron ore advances on stronger China economic outlook; set for weekly rise
By Gabrielle Ng
SINGAPORE, Nov 29 (Reuters) -Dalian iron ore futures climbed to their highest in more than a month on Friday and were set to gain for the week, 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) DCIOcv1 ended morning trade 1.65% higher at 801.5 yuan ($110.80) a metric ton.
The contract earlier rose as high as 806.5 yuan, its strongest since Oct. 14, and has added 3.42% so far this week.
The benchmark December iron ore SZZFZ4 on the Singapore Exchange was 1.52% higher at $105.3 a ton, a rise of 3.12% so far this week, as of 0350 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 recovered from Thursday's losses, with coking coal DJMcv1 and coke DCJcv1 gaining 0.32% and 0.45%, respectively.
Steel benchmarks on the Shanghai Futures Exchange gained ground. Rebar SRBcv1 and hot-rolled coil SHHCcv1 advanced around 1.15%, wire rod SWRcv1 added about 0.7% and stainless steel SHSScv1 rose nearly 0.2%.
($1 = 7.2337 Chinese yuan)
Reporting by Gabrielle Ng; Editing by Sumana Nandy
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