MARKET OUTLOOK - Iron ore stabilizes as strong steel outlook balances soft Chinese data

Forex - Iron ore traded in a narrow range as investors balanced strong expectations for China's steel market with weak economic data, limiting significant price movements in the market. The January iron ore contract at the Dalian Commodity Exchange (DCE) was trading at 789.0 yuan/ton ($108.91) at 05:35 GMT, marking a 0.32% increase. The benchmark December iron ore on the Singapore Exchange remained steady at $103.8/ton. Analysts noted that the steel sector has shown signs of improvement in recent months, with strong exports and declining stocks supporting this trend, while increases in steel production continue into November. They highlighted that upcoming meetings, including the Chinese Politburo meeting at the beginning of December and the Central Economic Work Conference in mid-December, are focusing the market, with improvements in steel producers' profits bolstering sentiment. New headwinds arising from high U.S. tariffs could threaten China's industrial sector next year, potentially reducing export gains. At the DCE, coking coal and coke fell by 0.16% and 0.68%, respectively. Steel indicators on the Shanghai Futures Exchange recorded marginal increases, with rebar remaining flat, while hot-rolled coil rose by 0.1%, wire rod by 0.77%, and stainless steel by 0.14%.