Iron ore futures surged on Monday, driven by improved market sentiment following a reduction in trade tensions between China and the United States.
The two countries announced an agreement to roll back tariffs on each other’s goods for an initial 90-day period. Under the deal, the U.S. will reduce tariffs on Chinese imports from 145pct to 30pct, while China will lower its duties on U.S. goods from 125pct to 10pct. The scale of these reductions exceeded market expectations, further lifting investor confidence.
Last week, steel prices had come under pressure amid escalating trade tensions between Washington and Beijing. However, the recent developments have sparked optimism. Reflecting this positive outlook, major steel producer Baosteel announced it would maintain its June domestic HRC prices.
On the Dalian Commodity Exchange, the most-active September iron ore contract jumped 7.185pct to 718.5 yuan (USD 99.2) per ton. Coke and coking coal futures also saw gains, rising 0.75pct and 0.68pct to close at 1,471.5 yuan (USD 203) and 889.5 yuan (USD 123) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar and HRC futures climbed over 1.5pct, reaching 3,082 yuan (USD 426) and 3,220 yuan (USD 445) per ton. Wire rod rose 1.39pct to 3,428 yuan (USD 474), and stainless steel futures increased 1.34pct to 12,890 yuan (USD 1,781) per ton.
1 USD / 7.23 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,428 |
1.39 |
1.87 |
| HRC | 3,220 |
1.51 |
1.96 |
| Rebar | 3,082 |
1.52 |
1.95 |
| Stainless Steel | 12,890 |
1.34 |
1.32 |
| Iron Ore | 718.5 |
3.16 |
3.13 |
| Coke | 1,471.5 |
0.75 |
1.70 |
| Coking Coal | 889.5 |
0.68 |
1.35 |