MARKET OUTLOOK - Iron Ore Rebounds as Trump's Victory Revives China's Stimulus Hopes

ForeX - Iron ore futures recovered as hopes increased that Donald Trump would announce stronger stimulus measures this week to counterbalance the negative effects of a potentially wider trade war following his presidential election victory in the United States. The January iron ore contract on the Dalian Commodity Exchange (DCE) concluded morning trading up 1.15% at 792 yuan/ton ($110.42). The benchmark December iron ore contract on the Singapore Exchange rose 0.44% to $104.4/ton at 07:28 GMT. Trump's return to the White House, surpassing the necessary 270 Electoral College votes to win the presidency, triggered concerns about a broader trade war that could impact metal consumption, leading to widespread losses in the metal complex yesterday. The president-elect also threatened to impose a 60% general tariff on imports of Chinese goods to boost production in the U.S. The Standing Committee of the National People's Congress of China will meet from November 4-8, and traders are keenly watching for long-awaited fiscal stimulus measures. Analysts noted that if strong fiscal stimulus policies are implemented, the expected infrastructure push and renewal before the end of the year could echo with short-term policy incentives and marginally improved fundamentals, supporting prices. According to official data, China's iron ore imports in October increased by 4.48%, thanks to Beijing's massive economic stimulus package that has improved steel producers' margins. On the DCE, coking coal and coke declined by 0.3% and 0.48%, respectively. Most steel indicators on the Shanghai Futures Exchange rose, with rebar up 0.15%, hot-rolled coil up 0.2%, and wire rod up 0.11%, while stainless steel fell by 0.41%.