Iron ore futures jumped on Tuesday, driven by optimism around easing U.S.-China trade tensions and robust near-term demand, which boosted market sentiment.
U.S. President Trump signaled a potential softening in the trade war with China, suggesting tariffs on Chinese imports could be reduced if a deal is struck. This marked a shift from recent escalation, which saw U.S. tariffs exceed 145pct and China retaliate with up to 125pct tariffs, export restrictions, and expanded control lists targeting U.S. firms.
Further supporting the market, strong domestic steel demand and increased steel production added to the bullish outlook for iron ore.
However, the long-term outlook remains clouded by continued protectionist measures from several countries targeting Chinese steel products.
On the Dalian Commodity Exchange, the most-traded September iron ore contract rose 2.11pct to 727.5 yuan (USD 99.6) per ton. Coke and coking coal futures also posted solid gains, climbing 3.14pct and 2.56pct to 1,595 yuan (USD 218) and 962.5 yuan (USD 132) per ton, respectively.
Meanwhile, on the Shanghai Futures Exchange, rebar and HRC futures advanced over 1.4pct to 3,137 yuan (USD 429) and 3,233 yuan (USD 443) per ton. Wire rod and stainless steel futures edged up 0.39pct to 3,369 yuan (USD 461) and 12,790 yuan (USD 1,751) per ton, respectively.
1 USD / 7.3 yuan
| Material | Closing Price (in yuan) |
Difference from Night Session (pct) |
Difference from Previous Morning Session (pct) |
| Wire Rod | 3,369 |
0.39 |
0.89 |
| HRC | 3,233 |
1.41 |
1.92 |
| Rebar | 3,137 |
1.46 |
1.98 |
| Stainless Steel | 12,790 |
0.39 |
0.78 |
| Iron Ore | 727.5 |
2.11 |
2.27 |
| Coke | 1,595 |
3.14 |
4.04 |
| Coking Coal | 962.5 |
2.56 |
3.53 |
