SINGAPORE- Iron ore futures retreated on Friday, but ended the week higher as investors assessed top consumer China’s latest pledge of further stimulus measures to shore up its faltering economy.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 1.12 percent lower at 797.0 yuan ($109.50) a metric ton.
The contract edged 0.31 percent higher this week, marking its fourth consecutive weekly rise.
The benchmark January iron ore on the Singapore Exchange fell 2.13 percent to $103.8 a ton, and has gained 2.65 percent so far this week.
“Markets were highly disappointed at the lack of concrete specifics from China’s Central Economic Work Conference, given such a promising start to the week from … the Politburo,” said Atilla Widnell, managing director at Navigate Commodities.
The letdown came despite Chinese authorities signaling the fine print on policy would be released in and around March 2025, Widnell added.
Beijing pledged on Thursday to increase its budget deficit, issue more debt and loosen monetary policy as it braces for heightened trade tensions ahead of a second Donald Trump presidency.
The remarks came in a readout of top Chinese leaders’ annual Central Economic Work Conference, held on Dec. 11-12.
