Iron ore futures prices rose to their highest level in more than five weeks, driven by moves by the United States and China to reduce tariffs following a trade agreement.
During Wednesday’s trading on the Dalian Exchange in China, the most active iron ore contract for September delivery touched its highest level since April 7, at 736.5 yuan per ton.
On the Singapore Exchange, iron ore futures for June delivery rose to their highest level since April 4, at $101.45.
This comes after China’s decision to reduce its tariffs on US goods to 10% for an initial 90 days took effect this morning.
Chinese iron ore mining company Shougang Hierro Peru also suspended operations after a portion of its shipping infrastructure collapsed. Repairs are likely to take four to five months, forcing it to purchase ore from the spot market to maintain production.
