Iron Ore Steady as Markets Await US-China Truce Decision

Iron ore futures held just below CNY 800 per tonne on Wednesday, as investors weighed the likelihood of an extension to the US-China tariff truce. President Donald Trump must now approve the proposed plan, otherwise, tariffs will revert to April levels if no agreement is reached by the August 12 deadline. Adding to global trade concerns, a new US-EU agreement maintained existing 50% tariffs on steel and aluminum, reinforcing market fears over escalating protectionism. Investors are also focused on this week’s Politburo meeting, where potential stimulus measures may be announced to support growth. In line with those efforts, Beijing has intensified its campaign to combat deflation and rein in industrial overcapacity. President Xi Jinping recently criticized local governments for excessive investment in sectors like artificial intelligence, computing power, and new energy vehicles.