BEIJING, Oct 17 (Reuters) – Iron ore futures prices headed for a weekly loss as concerns over the demand outlook stemming from U.S.-China trade tension met prospects of rising ore supply in the remainder of the year. By 0339 GMT, the most-traded January iron ore contract on China's Dalian Commodity Exchange (DCE) was little changed at 773 yuan ($108.52) a metric ton, representing a 2.8% fall so far this week. The benchmark November iron ore on the Singapore Exchange was 0.31% lower at $104.6 a ton, as of 0329 GMT. It has recorded a decline of 1.7% so far this week. Prices of the key steelmaking ingredient found some support from firm demand in top consumer China, which helped limit further downside on Friday. The average daily hot metal output stood at 2.41 million tons in the week as of October 16, a level that dictates steady ore demand despite a slight drop of 0.2% week-on-week, data from consultancy Mysteel showed. The return of trade friction between the United States and China, rekindled worries about whether the world's top metals consumer could achieve its economic growth target of around 5%. U.S. President Donald Trump threatened to terminate some trade ties with China and to slap an additional 100% tariffs on imports from the second largest economy after Beijing last week expanded export restrictions on rare earths that are vital for electric vehicles and defense sectors. Expectations of more supply in the fourth quarter added to pressure on ore prices. The world's largest iron ore supplier Rio Tinto, said on Tuesday it needs a strong year-end finish to meet its iron ore shipment target. Other steelmaking ingredients Coking coal and coke , gained 1.72% and 1.73%, respectively, facing constrained supply due to safety checks, analysts said. Steel benchmarks on the Shanghai Futures Exchange gained ground. Rebar rose 0.43%, hot-rolled coil added 0.47%, wire rod advanced 0.66% and stainless steel climbed 0.56%. ($1 = 7.1231 Chinese yuan) (Reporting by Amy Lv and Colleen Howe)
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