BEIJING: Prices of iron ore futures climbed to the highest point in more than five weeks on Wednesday, driven by moves from the United States and China to cut tariffs following a trade agreement, bolstering hopes for a lasting resolution to the trade dispute. The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) was up 1.81% at 732.5 yuan ($101.51) a metric ton, as of 0215 GMT.
The contract hit its highest level since April 7 at 736.5 yuan a ton earlier in the session. The benchmark June iron ore on the Singapore Exchange was 1.6% higher at $101.1 a ton, as of 0205 GMT. Earlier in the day, the contract hit the highest level since April 4 at $101.45. China said on Tuesday that it will lower its tariffs on US goods to 10% for an initial 90 days, starting from 12:01 pm (0401 GMT) on Wednesday.
The US will cut the “de minimis” tariff for low-value shipments from China to as low as 30%. US President Donald Trump said in an interview broadcast on Tuesday that he could see himself dealing directly with Chinese President Xi Jinping on the final details of a US-China trade deal.
Additionally, Chinese iron ore mining company Shougang Hierro Peru suspended operations after part of its dispatch infrastructure collapsed at its shipping port, with repairs likely taking four to five months.
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