Iron ore rises on firmer steel outlook, but trade tensions cap gains
Updates closing prices
By Gabrielle Ng
SINGAPORE, Nov 25 (Reuters) - Iron ore futures strengthenedon Monday, buoyed by stronger global steel production, although mounting trade tensions surrounding top consumer China capped gains.
The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) DCIOcv1 ended daytime trade0.84%higher at 781.5 yuan ($107.88)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 1.61% higher at $102.2 aton, as of 0710 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, Chinese exporters and policymakers arebracing for trade disruptions as U.S. President-elect Donald Trump has threatened to impose tariffs in excess of 60% on all Chinese goods.
The world's second-largest economy could 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.
The U.S. on Friday banned a range of Chinese imports, including iron ore, over alleged forced labor involving the Uyghurs, according to a government notice posted online.
Other steelmaking ingredients on the DCE lost ground, with coking coal DJMcv1 and coke DCJcv1 down 2.38%and 1.04%,respectively.
Most steel benchmarkson the Shanghai Futures Exchange ticked lower. Rebar SRBcv1 dropped about 0.2%,hot-rolled coil SHHCcv1 shed around 0.3%, stainless steel SHSScv1 dipped 0.04%, although wirerod SWRcv1 gained about 0.3%.
($1 = 7.2441 Chinese yuan)
Reporting by Gabrielle Ng; Editing by Sumana Nandy
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