Iron ore futures surged towards the critical $100 per metric ton level on Monday, buoyed by strong near-term demand and renewed expectations of additional economic stimulus from China, the world’s top consumer of the commodity.
As of 07:00 GMT, the benchmark December iron ore contract on the Singapore Exchange rose 2.78% to $99.40 per ton, briefly touching $100.30 earlier in the session. This marks a recovery after a more than 5% drop the previous week.
Meanwhile, the most-traded January contract on the Dalian Commodity Exchange (DCE) closed 1.87% higher at 761 yuan ($105.08) per ton. Analysts point to robust near-term demand for iron ore as a key factor keeping prices supported. Data from consultancy Mysteel shows that the average daily hot metal output among surveyed steelmakers increased by 0.8% week-on-week, reaching 2.36 million tons as of November 15, the highest since early August.
Additionally, news from Shanghai on Monday indicated plans to reduce taxes on real estate transactions starting December 1, a move expected to benefit the local property market. This has sparked hopes that China may introduce further stimulus measures to support its economy, especially after disappointing data from the property sector, which is a major steel consumer.
ANZ analysts note that Beijing’s willingness to implement more stimulus is likely, particularly ahead of anticipated higher tariffs in 2025. They predict that these actions will keep sentiment in the iron ore and steel industries relatively positive, with a short-term price target of $95 per ton.
Steelmaking inputs also saw gains on the DCE, with coking coal rising 0.51% and coke climbing 0.65%. Steel benchmarks on the Shanghai Futures Exchange were also in the green, with rebar, hot-rolled coil, wire rod, and stainless steel advancing by up to 0.53%.
With the continued optimism surrounding potential stimulus and strong demand, the iron ore market remains buoyant.
