MARKET OVERVIEW - Iron Ore Rises as Increasing Steel Production Offsets Weak Chinese Data

Iron ore prices rose for the third consecutive session as strong steel production overshadowed a series of weak economic data from China. The January iron ore contract on the Dalian Commodity Exchange (DCE) increased by 0.38% to 786.5 yuan per ton ($108.40) at 05:33 GMT. The benchmark December iron ore on the Singapore Exchange was traded at $103.05 per ton, up 0.48%.

Analysts noted that the iron ore markets have remained above $100, supported by an increase in China's steel production, citing data from the China Iron and Steel Association, which indicated that China's steel output during this period has stayed significantly above average, with production in the last three weeks increasing by 9.5% compared to the same period over the past three years.

In the struggling Chinese economy, where consumer prices have settled at their lowest levels in four months, industrial production continues to decline, and new housing prices experienced their fastest decline in nine years in October, demand remains weak.

Meanwhile, Chinese officials warned that U.S. President-elect Donald Trump's pledge to impose heavy tariffs on goods from China would harm the economies of all parties involved, lead to rising inflation, and damage employment markets.

On the DCE, coking coal and coke dropped by 2.04% and 1.22%, respectively. Steel indicators on the Shanghai Futures Exchange weakened, with rebar down by 0.27%, hot-rolled coil by 0.20%, wire rod by 1.2%, and stainless steel by 1.14%.