SINGAPORE (Reuters) - Iron ore futures rebounded on Monday, snapping a two-session slide as hopes for fresh stimulus in China overshadowed an uncertain economic outlook in the country, the country’s top consumer market. The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended trading 1.57% higher at 808.5 yuan ($111.12) a tonne. Benchmark January iron ore on the Singapore Exchange rose 1.05% to $104.4 a tonne. Iron ore prices were held above $100 a tonne on expectations of more stimulus announcements from the Beijing Central Economic Work Conference scheduled for Dec. 11-12, Westpac analysts said. "Recent Chinese stimulus measures have revived demand for steel and therefore iron ore, as home sales are showing some signs of improvement," ANZ analysts said. Stockpiles of the steelmaking ingredient fell last week to their lowest level since August, they said. Meanwhile, new yuan loans are expected to have nearly doubled in November from October, showing firmer credit demand following Beijing's recent stimulus measures. Still, consumer inflation hit a five-month low in November and deflation at factories persisted, suggesting limited impact from the government's efforts to shore up faltering demand. China is also bracing for the likely new tariffs of a second Trump presidency in the US, suggesting more stimulus will be needed to boost fragile growth. In addition, the Vale CEO’s downbeat comments last week about adapting to demand for lower-grade products have weighed on market sentiment towards iron ore, ANZ analysts said.

“The product will be geared towards lower-grade iron ore as margins remain under pressure.”

Source: Notícias Agrícolas