FX.co ★ Iron Ore Steady as Markets Await US-China Truce Decision

Iron ore futures remained just below CNY 800 per tonne on Wednesday as investors considered the potential extension of the US-China tariff truce. President Donald Trump is tasked with approving the proposed plan; failure to reach an agreement by the August 12 deadline could result in tariffs reverting to their previous April levels. Compounding global trade concerns, the newly established US-EU agreement retained the existing 50% tariffs on steel and aluminum. This development has heightened market apprehensions regarding rising protectionism. Meanwhile, investors are keeping a close eye on the Politburo meeting scheduled for this week, which may unveil possible stimulus measures to bolster economic growth. As part of these initiatives, Beijing has stepped up efforts to address deflation and curb industrial overcapacity. President Xi Jinping recently criticized local governments for their excessive investments in industries such as artificial intelligence, computing power, and new energy vehicles.