FX.co ★ Iron Ore Gains on US–China Trade Optimism

Iron ore futures surged to approximately CNY 705 per tonne on Wednesday, rebounding from earlier declines as markets responded positively to advancements in US–China trade discussions. Following two days of negotiations in London, both countries have arrived at a framework to implement the Geneva consensus and reiterated commitments made during a recent conversation between Presidents Trump and Xi. Under the preliminary deal, Beijing is anticipated to relax restrictions on rare earth exports, while the US might ease limitations on selling advanced technology to China—measures that could potentially stabilize global trade sentiment and boost industrial demand forecasts. Concurrently, the China Iron and Steel Association has issued a warning regarding an escalating price war within the electric vehicle industry, which is adversely impacting steel producers. Reports indicate that automakers are urging steel manufacturers to reduce prices on steel plates used in automobile production, thereby increasing margin pressures for the steel sector.