Market Overview: Iron Ore Rises Amid Increased Steel Production, but Trump’s Tariff Commitment Weighs on the Market

Forex - Iron ore recorded an increase for the second consecutive session despite the limited gains due to newly elected U.S. President Donald Trump's promise to implement new tariffs upon taking office, supported by the strengthening of global steel production.

The January iron ore contract at the Dalian Commodity Exchange (DCE) was trading at 786.5 yuan/ton ($108.41) with a 0.77% increase at 05:40 (GMT+3).

The benchmark December iron ore on the Singapore Exchange rose by 0.19% to $102.8/ton.

The World Steel Association upwardly revised production data, showing that global crude steel production in October increased by 1% compared to the previous year, up from the previously reported 0.4% increase last Friday.

According to the latest data, crude steel production in China, the world's largest metal producer and consumer, rose by 2.9% last month.

Meanwhile, Trump pledged to impose an additional 10% tariff on all Chinese goods until Beijing halts the illegal flow of drugs to the U.S.

The Chinese Embassy in Washington stated that neither the U.S. nor China would win a trade war resulting from Trump's tariffs.

Analysts noted that iron ore markets are focused on upcoming Chinese meetings, including a Politburo meeting scheduled for early December and a Central Economic Work Conference planned for mid-December.

At the DCE, coking coal fell by 0.7%, while coke increased by 0.44%.

Most steel indicators on the Shanghai Futures Exchange rose. Rebar gained 0.4%, hot-rolled coil rose by 0.3%, and wire rod appreciated by 1.2%, while stainless steel lost 0.7%.