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Iron ore dips on demand concerns but headed for weekly rise

Iron ore futures costs dipped on Friday, however were on track for weekly gains as investors weighed a softer international demand outlook against much better financial information from top consumer China and potential customers of more stimulus from Beijing.

The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) ended early morning trade 0.77%. lower at 776.0 yuan ($ 108.95) a metric heap. It has acquired 1.37%. up until now today.

The benchmark December iron ore on the Singapore. Exchange was 0.61% lower at $103.05 a lot, since 0340 GMT. It. has actually risen 2.35% so far today.

China's brand-new home prices increased at a faster pace in October,. suggesting that recent support procedures might be having some. early effect in a crisis-hit market.

Production activity on the planet's second-largest economy. swung back to development last month as a growth in brand-new orders. led to a pick-up in production development.

Nevertheless, brand-new export orders decreased to an eight-month low,. signalling weakening external demand, which has actually been among the. main drivers behind a stronger-than-expected production. efficiency for much of 2024, ING analysts said.

Moving forward, we'll need to see if the stimulus rollout. can cause a healing of domestic demand to offset potentially. softer external demand image, which might be even less. beneficial if we see a Trump success and subsequent escalation. of tariffs, said the ING experts.

On the other hand, imported iron ore stocks at 45 significant Chinese. ports posted their fourth consecutively weekly rise in the week. to Oct. 31, showing a lower discharge volume, consultancy. Mysteel said in a note.

Other steelmaking ingredients on the DCE lost ground, with. coking coal and coke down 0.37% and 0.59%,. respectively.

Steel criteria on the Shanghai Futures Exchange were. weaker. Rebar lost almost 0.6%, hot-rolled coil. dipped about 0.3%, wire rod shed nearly 1.2%. and stainless-steel edged around 0.1% lower.

(source: Reuters)