SINGAPORE- Iron ore futures prices recovered on Thursday from the previous session’s losses, as investors awaited clues on policy easing from a key economic meeting in top consumer China.
The most-traded January iron ore contract on China’s Dalian Commodity Exchange (DCE) ended morning trade 0.68 percent higher at 817.0 yuan ($112.49) a metric ton.
The benchmark January iron ore on the Singapore Exchange was 1.02 percent higher at $105.65 a ton.
“Iron ore prices remained steady as traders weighed the impact of additional stimulus from China and easing monetary policy against other structural headwinds,” said ANZ analysts in a note.
China’s top policymakers are considering allowing the yuan to weaken in 2025 as they brace for a second Donald Trump presidency, reflecting Beijing’s recognition that it needs bigger economic stimulus to combat Trump’s threats of bigger tariffs, Reuters reported on Wednesday.
The news weighed on sentiment in industrial metals markets as a weaker yuan could lead to capital outflows and a declining equity market, said ANZ.
