MARKET OVERVIEW - Iron Ore Remains Little Changed Amid Disappointment in Chinese Data and Stimulus

Forex - Iron ore futures prices traded within a narrow range as investors assessed a series of softer economic data from China following the ineffectiveness of the country's recent stimulus measures and a setback in the markets during the previous session.

At the Dalian Commodity Exchange (DCE), the January iron ore contract was trading at 763.5 yuan/ton (105.58 dollars) with a decrease of 0.07% at 05:50 GMT. The contract had dropped to 754.0 yuan/ton, the lowest level in two weeks, following a 3.5% decline in the previous session.

The benchmark December iron ore on the Singapore Exchange fell 0.16% to 100.5 dollars/ton. According to newly released data, new bank loans in China unexpectedly fell more than anticipated in October, reaching their lowest level in three months, as increased policy stimulus to support the struggling economy failed to bolster credit demand.

As the world's second-largest economy faces new pressures stemming from Donald Trump’s reelection as U.S. President, local governments had announced a debt package of 10 trillion yuan on Friday to ease funding strains and stabilize declining economic growth.

Analysts pointed out that the lack of additional support for China's real estate market has put pressure on the iron ore market, further exacerbated by signs of weak demand. They also noted that iron ore port stocks in China have expanded over the last four weeks, reaching their highest level since the beginning of September.

At the DCE, coking coal and coke fell by 1.84% and 1.56% respectively. Steel indicators at the Shanghai Futures Exchange also lost value, with rebar down 0.8%, hot-rolled coil down 0.7%, wire rod down 0.2%, and stainless steel down 0.56%.