Iron ore rebounds as Trump win reignites China stimulus hopes
BEIJING, Nov 7 (Reuters) -Iron ore futures recovered on Thursday, as Donald Trump winning the U.S. presidential election heightened hopes that top consumer China would unveil stronger stimulus measures this week to offset any negative impacts of a potentially wider trade war.
The most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) DCIOcv1 ended morning trade 1.15% higher at 792 yuan ($110.42) a metric ton.
The benchmark December iron ore contract SZZFZ4 on the Singapore Exchange was 0.44% higher at $104.4 a ton, as of 0428 GMT.
Trump's comeback to the White House, with more than the 270 Electoral College votes needed to win the presidency, sparked concerns over a wider trade war that could hit metals consumptions, with the metals complex recording broad losses on Wednesday.
The president-elect has also threatened to impose a 60% blanket tariff on imports of Chinese goods to boost U.S. manufacturing.
China's National People's Congress Standing Committee is meeting over Nov. 4-8, with traders focusing on keenly-watched directions from long-awaited fiscal stimulus measures.
"If a strong fiscal stimulus policy is implemented, coupled with the realization of the infrastructure rush and replenishment ahead of the year-end, the short-term policy stimulus and marginally improved fundamentals are expected to resonate, supporting prices," analysts at Jinrui Futures said in a note.
China's iron ore imports in October climbed 4.48%, official data showed, as steelmakers' margins improved, thanks to Beijing's massive economic stimulus package spurring more buying.
Other steelmaking ingredients on the DCE dipped, with coking coal DJMcv1 and coke DCJcv1 down 0.3% and 0.48%, respectively.
Most steel benchmarks on the Shanghai Futures Exchange ticked higher. Rebar SRBcv1 added 0.15%, hot-rolled coil SHHCcv1 gained 0.2%, wire rod SWRcv1 edged up 0.11% while stainless steel SHSScv1 ticked down 0.41%.
($1 = 7.1726 Chinese yuan)
Reporting by Amy Lv and Mei Mei Chu; Editing by Rashmi Aich
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