- Iron ore prices rose above $103 per ton on July 29, 2025, following optimism over an extension of the US-China trade truce.
- The price jump comes after a sharp decline earlier in the week, supported by expectations of higher steel demand and hopes for China’s economic recovery.
- US Commerce Secretary Howard Lutnick indicated ongoing negotiations between the world’s two largest economies for a possible 90-day truce extension.
- Chinese steel companies’ performance is improving, with losses projected to narrow by 70% in the first half of 2025 compared to the previous year.
- Iron ore futures marked their fifth consecutive weekly gain, the longest streak since 2023, reflecting improved market sentiment.
Iron ore prices climbed to $103 per ton on July 29, 2025, after news broke about ongoing talks to extend the US-China trade truce by 90 days. The price rose more than 2% after dipping 4% in the previous two trading sessions, as traders responded to signs of stronger steel demand and expectations that China’s economy is recovering.
This rebound followed comments from US Commerce Secretary Howard Lutnick, who said, “A 90-day extension of a trade truce with China was possible, with negotiations between the two biggest economies underway.” Even though the United States does not import large amounts of Chinese steel, possible relief in trade tensions lifted global economic sentiment and supported the prices of industrial raw materials like iron ore.
The industrial metals market also received a boost from developments in China’s steel sector. Analysts reported that China’s 22 publicly listed steelmakers expect their losses to shrink by 70% in the first half of 2025 compared to a year earlier. Michelle Leung from Bloomberg Intelligence noted, “Most steel companies’ margins climbed in 1Q from a year earlier, showing signs of bottoming out from 2024.”
At 12:20 p.m. Singapore time on July 29, iron ore futures were up 2%, trading at $102.85 per ton. With this increase, iron ore marked its fifth consecutive weekly gain, the longest upward streak since November 2023. The performance reflects expectations of higher steel demand and optimism about China’s ongoing efforts to phase out its outdated industrial capacity.
Contracts priced in China’s currency on the Dalian exchange, as well as Shanghai steel contracts, have contributed to the current rally. While iron ore prices have been volatile this year, they remain close to where they began in 2025, with industrial metals rallying on stronger sentiment.
A positive reporting period for the steel sector in China, the world’s largest steel producer, could continue to support iron ore prices. Combined with efforts to ease US-China trade tensions, these trends are creating favorable conditions for industrial commodity markets. For more details, visit this Bloomberg article.
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