* Dalian iron ore scales new peak at 940 yuan/t
* Spot 62% iron ore hits fresh seven-year high
By Enrico Dela Cruz
MANILA, Dec 3 (Reuters) - China's iron ore benchmark scaled a record high on Thursday after miner Vale SA unveiled output targets that lagged forecasts, adding to concerns about weak seaborne supply.
The Brazilian miner VALE3.SA trimmed its 2020 output guidance to 300 million to 305 million tonnes, from a previous target of at least 310 million tonnes. 2021 production forecast of 315 million to 335 million tonnes, which took into account rainy conditions and other risks, also disappointed some analysts.
The disappointing forecasts added fuel to an iron ore rally that began last week, driven mainly by robust demand in top steel producer China and partly by supply concerns.
Iron ore's most-traded January contract on China's Dalian Commodity Exchange DCIOcv1 rose 2% to 940 yuan ($143.41) a tonne in early trade.
Iron ore on the Singapore Exchange SZZFF1 climbed 0.8% to $132.07 a tonne.
Spot iron ore jumped to $133.50 a tonne on Wednesday, the highest since January 2014, according to SteelHome consultancy data. SH-CCN-IRNOR62
China's iron ore demand revved up in the second half of 2020 as the world's second-largest economy is on track to become the first to fully recover from the COVID-19 pandemic.
"China's infrastructure, property and manufacturing sectors have all surpassed expectations this year," Commonwealth Bank of Australia commodities analyst Vivek Dhar said.
Rising demand and weaker supply have both resulted in a tighter seaborne iron ore market, he said, citing ship-tracking data that indicated lower shipments from top supplier Australia in November.
Steel futures retreated slightly after recent gains, with rebar on the Shanghai Futures Exchange SRBcv1 down 0.3% by 0303 GMT, while hot-rolled coil SHHCcv1 slipped 0.2%. Stainless steel SHSScv1 gained 0.1%.
Tight supply kept coking coal DJMcv1 well supported. Coking coal rose 1.2%, while coke DCJcv1 dropped 0.5%.