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Dalian iron ore retreats on China stimulus uncertainty

Dalian iron ore futures prices faltered on Thursday, surrendering earlier gains as uncertainty surrounding top customer China's fiscal stimulus plans clouded market belief, although firmer seasonal need for steel products minimal losses.

The most-traded January iron ore contract on China's Dalian Product Exchange (DCE) ended daytime trade 1.02%. lower at 775.5 yuan ($ 109.65) a metric ton.

The benchmark November iron ore on the Singapore. Exchange was 0.65% lower at $104.2 a ton, since 0705 GMT.

Products markets remain under pressure as hopes of. even more Chinese stimulus measures faded, stated ANZ experts in a. note.

Still, iron ore futures acquired previously after China. announced another briefing on policy assistance, increasing. speculation of more stimulus measures, included ANZ.

China's finance ministry will information intend on fiscal. stimulus to boost the economy at a highly anticipated news. conference on Saturday, the federal government said on Wednesday,. signalling more powerful policies to restore growth.

It is uncertain if administrative procedures for possible. fiscal moves are total, as major variances from the budget plan. or deficit target usually require to be authorized by the National. Individuals's Congress, stated ING analysts.

Regardless, we continue to anticipate a fiscal stimulus push in. the coming weeks and months and have upgraded our 2025 development. projection from 4.6% to 4.8% year-on-year in anticipation of. stronger policy assistance, said ING.

Meanwhile, robust seasonal demand in the steel market's secret. golden October period is supporting an enhancement in the. supply-demand balance for commercial steel items, stated. Chinese consultancy Steelhome.

Rates of area rebar increased to their highest level in more. than 2 months, and steel mill margins have also enhanced in. recent weeks, the ANZ experts said.

Other steelmaking active ingredients on the DCE were weaker, with. coking coal and coke down 3.23% and 2.56%. respectively.

A lot of steel criteria on the Shanghai Futures Exchange. posted losses. Rebar dropped 1.66%, hot-rolled coil. shed almost 0.9%, stainless-steel decreased. 0.57%, and wire rod was flat.

(source: Reuters)