Dalian iron ore hits more than two-week high on firmer steel outlook, fresh China stimulus
By Gabrielle Ng
SINGAPORE, Nov 25 (Reuters) -Dalian iron ore futures rose to their highest in more than two weeks on Monday, buoyed by stronger global steel production and further monetary stimulus from top consumer China.
The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) DCIOcv1 ended morning trade 0.06% higher at 775.5 yuan ($107.06) a metric ton.
The contract had earlier risen as high as 791.0 yuan, its strongest since Nov. 8.
The benchmark December iron ore SZZFZ4 on the Singapore Exchange was 0.72% higher at $101.3 a ton, as of 0415 GMT.
Global crude steel output in October climbed 0.4% from the previous year to hit 151.2 million tons, World Steel Association data showed on Friday.
In China, the world's top metals producer and consumer of the metal, crude steel production rose 2.9% to 81.9 million tons over the same period, the data showed.
Lower Chinese steel product inventory driven by robust exports also supported iron ore prices above $100 a ton, Westpac analysts said in a note.
Meanwhile, China's central bank injected 900 billion yuan ($124.3 billion) into its banking system on Monday via one-year policy loans.
China's banking system is facing increasing liquidity pressure toward the end of the year, with local governments increasing bond issuance as Beijing ramps up efforts to reduce debt risks and stimulate the struggling economy.
The world's second-largest economy could also face nearly 40% tariffs on its exports to the U.S. next year, said economists polled by Reuters, potentially slicing growth by up to 1 percentage point.
Other steelmaking ingredients on the DCE lost ground, with coking coal DJMcv1 and coke DCJcv1 down 2.11% and 1.06%, respectively.
Steel benchmarks on the Shanghai Futures Exchange ticked lower. Rebar SRBcv1 and hot-rolled coil SHHCcv1 dropped nearly 0.5%, wire rod SWRcv1 dipped about 0.1% and stainless steel SHSScv1 slid 0.06%.
($1 = 7.2434 Chinese yuan)
Reporting by Gabrielle Ng; Editing by Sumana Nandy
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