Iron ore futures continued their upward momentum on Tuesday, supported by improving trade relations between Beijing and Washington. Market sentiment was lifted after US and Chinese officials announced plans to reduce tariffs on each other’s goods for 90 days and initiate a new round of trade talks.
As part of the agreement, both countries will slash tariffs by 115pct. US duties on Chinese imports will drop to 30pct, while China will cut its tariffs on American goods to 10pct.
Despite the positive short-term impact, the long-term outlook for iron ore demand remains uncertain. Analysts point to potential production curbs in China’s steel sector and a likely decline in steel exports due to growing protectionist policies targeting Chinese steel products. Seasonal factors are also weighing on demand, as the summer period typically sees a slowdown in construction activity, further reducing steel consumption.
On the Dalian Commodity Exchange, the most-active September iron ore contract rose 1.06pct to 714.5 yuan (USD 98.9) per ton. In contrast, coke and coking coal futures edged lower, down 0.69pct and 0.85pct, closing at 1,447 yuan (USD 200) and 870.5 yuan (USD 121) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar futures increased 0.88pct to 3,079 yuan (USD 426), while HRC futures gained 0.78pct to 3,215 yuan (USD 445) per ton. Wire rod prices climbed 1pct to 3,439 yuan (USD 476), and stainless steel futures edged up 0.51pct to 12,930 yuan (USD 1,791) per ton.
1 USD / 7.22 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,439 |
1.00 |
0.32 |
| HRC | 3,215 |
0.78 |
-0.16 |
| Rebar | 3,079 |
0.88 |
-0.10 |
| Stainless Steel | 12,930 |
0.51 |
0.31 |
| Iron Ore | 714.5 |
1.06 |
-0.56 |
| Coke | 1,447 |
-0.69 |
-1.69 |
| Coking Coal | 870.5 |
-0.85 |
-2.18 |