Commodity Roundup: Iron ore rises as hopes grow for extension of US-China trade truce

[Steelworker cleaning pouring end of flask during steel pour in steelworks]
Monty Rakusen

Iron ore rebounded on Tuesday after reports of a possible extension to the U.S.-China trade truce helped ease fears over tariff-related pressure on the global economy.

The steelmaking commodity climbed over 2% to nearly $103 (RM435.83) a tonne, recovering from a more than 4% decline over the past two sessions.

US Commerce Secretary Howard Lutnick said a 90-day extension of a trade truce with China was possible, with negotiations between the two biggest economies underway.

Ferrous markets have reacted sharply to tariff announcements from President Trump, with concerns over global growth weighing on prices. Iron ore has dropped roughly 12% since hitting its 2025 peak in mid-February, though prices found some support after China pledged to eliminate outdated production capacity.

Prices recently notched a fifth consecutive weekly gain—the longest streak since November 2023.

Futures were 2% higher to $102.85 a ton on Tuesday. Yuan-priced contracts in Dalian also gained, along with steel contracts in Shanghai.

Elsewhere, Asia's coal price benchmark rose to a five-month high after hot summer weather boosted demand for air conditioning and reduced brimming inventories, _Bloomberg_ reported.

Australian Newcastle futures rose to $115.50 per ton, the highest for the front-month contract since February.

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