BEIJING: Prices of iron ore futures rose on Wednesday, bolstered by hopes of a further extension of a tariff truce between the world’s top two economies, although caution ahead of a high-level meeting in top consumer China limited the gains.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) traded 0.69% higher at 798 yuan ($111.23) a metric ton, as of 0211 GMT.
The benchmark September iron ore on the Singapore Exchange was up 0.16% at $102.9 a ton, as of 0205 GMT.
U.S. and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, following two days of what both sides described as constructive talks in Stockholm aimed at defusing an escalating trade war between the world’s two biggest economies that threatens global growth.
While U.S. officials said President Donald Trump will decide whether to extend the trade truce that expires on August 12, Treasury Secretary Scott Bessent tamped down any expectation of Trump rejecting the extension.
Lifting market sentiment, the International Monetary Fund raised its forecast for China’s economic growth this year to 4.8% from 4.0%.
The iron ore market has recently been influenced more by the macro sentiment, analysts at broker Everbright Futures said in a note.
Gains in iron ore prices were capped by concerns that Beijing may not unveil more stimulus measures at a Politburo meeting by end-July, which is expected to set the country’s economic policy for the rest of the year.
Other steelmaking ingredients on the DCE rebounded from two sessions of falls, with coking coal and coke up 5.66% and 5.3%, respectively.
Steel benchmarks on the Shanghai Futures Exchange gained on higher raw materials costs.
Rebar rose 1.48%, hot-rolled coil climbed 2.11%, wire rod advanced 1.62% and stainless steel ticked 0.58% higher.
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