Iron ore futures on the exchange rose on Tuesday, with the market rallying for the first time in four sessions on expectations of lower US tariffs on Chinese goods, although fears of a global recession limited gains. .
Asian stocks had their best day in a week. Positive economic data and signs of easing Sino-US tensions offered some relief after recent sell-offs, although fears of sky-high inflation dampened the mood.
The most traded iron ore on the Dalian commodity exchange closed up 1.4% at 742.5 yuan ($110.87) a tonne. On the Singapore Stock Exchange, the contract for the next month rose 3.1% to US$112.05 a tonne.
“It is worth noting that demand for steel in China increased in June with the easing of lockdowns in Shanghai,” Commonwealth Bank of Australia analyst Vivek Dhar wrote in a note.
China's zero Covid policy, however, has raised doubts whether this level of demand growth can be sustained.
Iron ore prices will also face restrictions on steel production later this year due to the policy of reducing steel production in 2022.
Offering a brief respite to markets, news emerged that US President Joe Biden was leaning towards a decision to ease tariffs on Chinese goods, as well as that Chinese Vice Premier Liu He spoke with Secretary of the US Treasury, Janet Yellen.
Source: investing.com
