Prices of iron ore futures retreated on Wednesday as hopes of more stimulus from top consumer China faded, erasing earlier gains that were underpinned by prospects of a further extension of a tariff truce between the U.S. and the Asian country.
The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) TIO1! ended daytime trade 0.44% lower at 789 yuan ($109.95) a metric ton.
The benchmark September iron ore (SZZFU5) on the Singapore Exchange fell 0.91% to $101.8 a ton, as of 0700 GMT.
State media Xinhua’s readout for the July Politburo meeting that sets the economic course for the rest of the year said China would keep policy stable without specifying concrete measures.
That disappointed those who had expected Beijing to roll out some measures to support its remaining struggling property market, which has dragged economic growth and consumption of various industrial materials including steel.
Prices of the key steelmaking ingredient had recorded gains in the morning trade after U.S. and Chinese officials agreed to seek an extension of their 90-day tariff truce on Tuesday, following two days of what both sides described as constructive talks in Stockholm aimed at defusing an escalating trade war.
While U.S. officials said President Donald Trump will decide whether to extend the trade truce that expires on August 12, Treasury Secretary Scott Bessent tamped down any expectation of Trump rejecting the extension.
In addition, the International Monetary Fund raised its forecast for China’s economic growth this year to 4.8% from 4.0%, lifting sentiment and contributing to price gains.
Gains of coking coal and coke (DCJcv1), steelmaking ingredients, narrowed in the afternoon, up 2.71% and 4%, respectively, after jumping over 6% earlier in the session.
Steel benchmarks on the Shanghai Futures Exchange gained ground. Rebar rose 0.42%, hot-rolled coil climbed 0.81%, wire rod (SWRcv1) advanced 0.2% and stainless steel ticked 0.31% higher.
Source: Reuters
