- Chinese steel futures hit a one-week high on Wednesday, after data showed industrial output in the world"s biggest producer grew faster than expected in November, but a continued decline in steel production dragged down Dalian iron ore. Construction steel rebar"s most-active May contract on the Shanghai Futures Exchange ended daytime trading 1.1% higher at 4,441 yuan ($697.82) a tonne, after touching 4,468 yuan earlier in the session, its strongest since Dec. 8. Hot rolled coil , which is steel used in car bodies and home appliances, climbed 1.5% to 4,609 yuan a tonne. Factory output rose 3.8% in November from a year earlier, accelerating from a 3.5% increase in October, official data showed, supported by stronger energy production and a moderation in raw materials prices. read more But crude steel output fell for the sixth consecutive month in November, plunging 22% from a year earlier, as production restrictions to combat pollution continued and construction demand remained stagnant. read more China"s monthly crude steel output China"s monthly crude steel output The Dalian Commodity Exchange"s most-traded May contract for iron ore, a key steelmaking ingredient, fell 2% to 649 yuan a tonne. On the Singapore Exchange, the most-active January contract was virtually flat at $112.90 a tonne by 0706 GMT, after rising 1.6% earlier in the day. "The China policy landscape at the macro-level, including moves towards decarbonisation, remains a cap over the medium-term demand outlook for iron ore," ING analysts said in their 2022 outlook for commodities. They expect iron ore prices to weaken to $100 a tonne over 2022, "with the main upside risks still being potential supply chain disruptions in light of the Omicron variant". Spot iron ore in China stood at $115.50 a tonne on Tuesday, the highest since Oct. 28, but just half of a record peak scaled in May, according to SteelHome consultancy data. Shanghai stainless steel rose 1.2%. Dalian coking coal slipped 0.1%, while coke advanced 0.6%. Reporting by Enrico Dela Cruz in Manila; Editing by Subhranshu Sahu and Rashmi Aich Our Standards: The Thomson Reuters Trust Principles.