MARKET OVERVIEW - Iron Ore Rises on Resilient Steel Demand and Hopes for China's Stimulus

Iron ore futures have risen for the third consecutive session, supported by resilient steel demand and ongoing hopes for economic stimulus in China. However, high port stocks limited the gains. The January iron ore contract on the Dalian Commodity Exchange (DCE) finished the morning session up 0.98% at 773.5 yuan/ton ($106.82). According to data from consultancy Mysteel, the daily trading volume of construction steel products in China rose by 0.67% to 135,100 tons yesterday, marking the third consecutive session of increases. The benchmark December iron ore on the Singapore Exchange changed little at $101.1/ton as of 06:35 GMT. Steel consumption typically contracts in November as outdoor construction slows in the colder northern regions, but this month has been balanced by demand in the warmer southern and eastern regions. Steel indicators on the Shanghai Futures Exchange recorded gains, with rebar up 0.85%, hot-rolled coil up 0.43%, wire rod up 0.47%, and stainless steel up 0.19%. On the DCE, coking coal and coke increased by 0.35% and 0.34%, respectively. China left its benchmark lending rates unchanged today following a larger-than-expected reduction in borrowing costs by lenders last month to stimulate economic activity.