Iron Ore Jumps 2% as US-China Trade Truce Extension Sparks Market Rally

Trade war détente sends commodities soaring—iron ore leads the charge.

Subheader: Markets Bet on 90-Day Breathing Room

Futures surged after whispers of extended negotiations hit trading floors. No concrete deal yet, but hey—since when did that stop traders from front-running headlines?

Subheader: Raw Materials Ride the Geopolitical Wave

Industrial metals rallied globally, though iron ore's 2% pop outpaced peers. Classic case of 'buy first, read the fine print never.'

Closing jab: Another day, another temporary fix kicking the can toward Q4 earnings season. At least the algo bots will feast on volatility.

Iron Ore Price Surge Sparks Optimism Amid Trade Truce and Steel Demand

The latest iron ore price surge was actually triggered by comments from US Commerce Secretary Howard Lutnick, who indicated that negotiations between the world’s two largest economies are underway right now. Markets have responded positively to news that a 90-day extension of the trade truce was possible, and this has been boosting sentiment for industrial raw materials along with supporting the steel demand outlook.

US Commerce Secretary Howard Lutnick said:

While the US is not a major importer of Chinese steel, a pause in tensions between these economic powerhouses has been boosting overall economic sentiment, and as a result, demand for industrial raw materials has been strengthened.

China’s Steel Sector Drives Industrial Metals Rally

The industrial metals rally has gained additional momentum from some positive developments in China’s steel sector, which is showing signs of recovery right now. The nation’s 22 listed steelmakers will see losses narrow by 70% in the first half compared with a year earlier, and this is supporting the iron ore price surge along with the broader China economic recovery narrative.

Bloomberg Intelligence analyst Michelle Leung stated:

Fifth Weekly Gain Marks Longest Streak Since 2023

At the time of writing, iron ore futures were actually trading 2% higher at $102.85 per ton as of 12:20 p.m. Singapore time. This marks the fifth consecutive weekly gain for the commodity – the longest streak since November 2023, and the sustained rally reflects an improved steel demand outlook along with Optimism over China’s efforts to eliminate outdated industrial capacity.

Yuan-priced contracts in Dalian have supported the current iron ore price surge, and they have also gained ground alongside steel contracts in Shanghai. While prices have experienced some volatility throughout 2025, they now trade little changed from the start of the year, and the industrial metals rally is providing renewed momentum for the sector.

A more positive reporting period in China, the world’s biggest steel producer, could also provide more support for iron ore going forward. The China economic recovery efforts, combined with the potential for reduced trade tensions, are creating conditions that actually favor industrial commodity prices right now.